Japan
FSB calls for more progress on risk-free reference rates
The FSB says authorities have made progress towards reforming reference rate methodologies, but says they must continue to develop alternatives to the existing main reference rates
Temporary price changes affecting inflation more – BoJ paper
Working paper explores how frequent micro-level price changes can be reconciled with macro-price stickiness; temporary price changes happening more, and increasingly in one direction, authors say
Shirai urges BoJ to change course
Former policy board member says the Bank of Japan’s current policies are not sustainable, recommending a rethink of policy mix and communication strategy
Bank of Tokyo abandons JGB primary dealer role
Bank of Tokyo-Mitsubishi UFJ steps back from role citing “business optimisation”, in the latest sign the Bank of Japan’s policy is putting the squeeze on bank profits
BoJ paper models impact of guidance on expectations
Announcing forward guidance before reaching the effective lower bound can help to “positively influence” inflation and output growth, the author finds
BoJ aiming to make better use of upgraded settlement system
New version of BoJ-Net carries various advantages and has seen growing settlement volume, but the central bank wants to push this further
Kiuchi says BoJ must communicate better
Board member concerned monetary policy is becoming less predictable as observers expect ever more easing; warns against use of negative rates
BoJ research turns to new data set to study wage-price links
Research sheds light on factors that may push up wage expectations, drawing on a unique survey of Japanese expectations
Kuroda says policy rules deserve further research
BoJ governor says work on policy rules and “incomplete contract theory” could help central bankers set policy more predictably
IMF staff warn BoJ against unconventional monetary policies
Fund staff tell Japan to launch even more fiscal and monetary stimulus, but caution against monetisation of the government's debt
BoJ economists shed light on quality-price dynamics
Study of large database of prices shows how firms take advantage of new product launches to raise prices partly due to higher quality and partly to maintain profits
Dombret flags demographic concerns in Tokyo speech
Bundesbank board member draws parallel between Germany and Japan as he notes risks to potential growth rate; stresses need for “growth-enhancing measures”
Opportunities and risks from economic recovery
Former prime minister of Japan Yukio Hatoyama, chairman of the IFF Advisory Committee, welcomes the shift in China’s direction towards sustained growth through structural reforms
BoJ vigilant to bond market impact of QQE, Nakaso says
Central bank is monitoring effects of large-scale asset purchases and doing its best to maintain market stability, deputy governor says
Japanese inflation target a partial success – Fed paper
Authors show adopting inflation target during a liquidity trap can have powerful effects, but in the Japanese case it seems to have been weakened by other factors
Sato hits out at BoJ's negative rates
Board member warns negative rates in Japan may lead to tighter conditions and financial instability, as prime minister delays tax hike in face of deflation risk
Nakaso: BoJ should play leading role in global stability discussions
Greater co-operation needed among central banks to maintain global financial stability, says Japanese deputy; cites need for engagement and close monitoring
BoJ keeping options open on new technologies
Deputy governor Hiroshi Nakaso says the Bank of Japan is not planning to issue a digital currency any time soon, but is exploring the possibilities created by technological innovations
BoJ board members fear negative rates are damaging
Minutes show concerns over the effects of negative rates on confidence, communication and market turbulence
BoJ holds policy despite weakening expectations
Yen climbs as policy board keeps interest rates and asset purchases at existing levels; growth and inflation forecasts cut while there is “considerable uncertainty” around the outlook
BoJ sees operational issues dampen negative rate effect
Financial system report says combination of negative rates and QQE is helping push rates lower and prompting portfolio rebalancing, but “several factors” are holding the effects back
BoJ survey reveals growing pessimism over economy
Share of respondents who expect conditions to worsen over coming year rises to over one-third, although most believe conditions have stayed the same over the past 12 months, and will do so again
Kuroda: Negative rates having ‘visible’ impact on JGB yields
Bank of Japan governor Haruhiko Kuroda says rates are falling across the yield curve, falling negative up to a maturity of “around” 10 years; sees effects spreading in future
BoJ paper attempts to ditch Friedman rule with new model
Paper outlines model where mild inflation is welfare-optimising, in contrast to Milton Friedman’s rule implying mild deflation, which underpins many monetary models