Kishida to discuss gov't, BOJ roles with new central bank head

The only interest rate that is actually negative is the Reserve Rate for banks which is - 0.10%. This would he the first rate to be returned to zero at SOME point. It's unlikely there will be a 'meaningful' rise in mortgage rates anytime in the near future.

Raise interest rate to return BOJ/Japan's creditability

Something like 80% of households are on variable rate mortgages, and many families are already living month to month. Any meaningful raise in interest rates is impossible unless there is serious wage growth

Raise interest rate to return BOJ/Japan's creditability. Zombie companies need to die in order for resources and capital to be properly reallocated. The rest of the world is passing Japan by.

push inflation turns into a demand-driven one accompanied by higher wages.

yeah good luck with that, companies will resist that at all costs,

its pretty simple really, people will only spend what expendable income they have, inflation is actually making people salaries smaller, ive yet to see a company increase wages at or faster than the actual inflation rate.

@SmithithinJapan

 other words, Kishida is just going to sit down, shut up, and listen to whatever demands Kuroda makes.

I do not understand why you say that.

Kuroda has already lost all power. He actually was forced by Kishida to tweak the monetary policy last month which of course he did not want to do just before leaving because it means his policy has been a total failure.

Nobody cares about what he says anymore.

@smithinjapan: ?? Far from it. If anything it seems that Kishida wants to move away from Kurodas policies when he retires.

The documental “The Money Masters” explains in detail what is happening. Author is Bill Still and it is in You-TUBE. It is right on topic.

https://youtu.be/AOk3wBuQNcE

In other words, Kishida is just going to sit down, shut up, and listen to whatever demands Kuroda makes.

The BOJ like all other central banks can only lend money, but not spend it to real economy. If this created money is only invested in things that do not pay off or don’t increase productivity of economy (old depths , non-sense projects, social welfare others), then only the balance sheet is increased and money flows to overseas (carry-trades) and to those who have a lot of financial assets.

This is obviously happening in Japan since 30 years.

"The government and the BOJ must work closely together, but also each play its own role" in achieving price stability and higher wage growth, Kishida said in a programme on public broadcaster NHK.

Kishida and the BOJ have followed the neo-liberal blueprint of most industrialized nations that monetary easing QE, a guaranteed basic income to large capital asset holders, somehow would trickle down to wage earners.

https://www.cnbc.com/2013/12/18/qe-the-greatest-subsidy-to-the-rich-ever.html

Obviously has not worked but the results for wage earning human resources matter little to the corporatocratic heads.