Zhitong Finance APP was informed that last Saturday, media reports said that Japanese Prime Minister Fumio Kishida planned to revise a 10-year agreement with the Bank of Japan, which will be revised for the first time to achieve stable economic growth a joint statement stipulating the responsibilities of the government and the central bank. Regarding the 2% inflation target proposed in the statement to be "achieved as soon as possible", discussions will be carried out in a more flexible direction. After that, the yen opened higher this week. The yen rose as much as 0.6% to 135.79 yen per dollar on Monday morning. According to reports, Fumio Kishida will discuss the matter as the next governor of the Bank of Japan, who will succeed Haruhiko Kuroda in April. If the forecasts are confirmed, it would be in stark contrast to comments made by Fumio Kishida in June, when he said he expected the BOJ to stick to its 2% inflation target.
The yen has been the worst-performing major currency this year as Bank of Japan Governor Haruhiko Kuroda's insistence on buying large amounts of government bonds has meant Japan's yields have remained low, while government bond yields elsewhere have soared as other central banks around the world raise interest rates to fight inflation. Bank of Japan officials believe a policy review is likely next year after taking a closer look at wage growth and a slowdown in the global economy, according to people familiar with the matter.
Current Governor Haruhiko Kuroda has implemented large-scale monetary easing policies in the past ten years to achieve his goals. The modification of the statement may develop into a modification of the easing policy. The joint statement was announced in 2013 and will be the first modification. The purpose of large-scale monetary easing policy is to support the economy by keeping interest rates at extremely low levels. However, it has clearly had negative effects recently, such as causing the yen to plummet and becoming one of the reasons for the historic price rise.
Investors including Fidelity International and T. Rowe Price are bullish on the yen. USD/JPY rose to 151.95 earlier this year, sending the yen to its lowest level in 30 years.
PineBridge Asia-Pacific investment grade bond fund manager Omar Slim said that the Japanese authorities hope to maintain the dollar-yen exchange rate at around 145. "For them, at least for now, the optimal level is 120 or 130." Slim takes a negative view on Japanese government bonds, whose yields have been artificially depressed for years to keep borrowing costs at a minimum.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-