The full reopening of Japanese borders has been a boon to businesses as the country comes to terms with the hard reality of co-existing with COVID. But with the world grappling with slowing growth and pressing concerns like geopolitical …
Market Perspective Volatility likely to remain elevated in the new year as central bank policy expectations diverge amid evidence of slowing growth and moderating inflation. While slowing the pace of tightening, the US Federal Reserve reinforced its commitment to taming
The Japanese yen (JPY) has plunged to its lowest level in decades against the US dollar, as the Bank of Japan (BOJ) has kept its monetary policy ultra-loose even as other central banks begin to hike interest rates and dial
Market Perspective Inflation concerns remain at the forefront for central banks and investors as global growth continues to trend lower amid supply disruptions, geopolitical challenges and reduction of liquidity, setting the stage for a challenging macro backdrop. The US Federal
The Bank of Japan (BOJ) currently has no plans to issue central bank digital currency (CBDC), but to ensure the stability and efficiency of settlement systems as a whole, the BOJ regards it …
The economy is facing two shocks. An inflation shock has led to a sharp hawkish shift by central banks. The Fed is now expected to raise policy rates to 2.5% this year. The BoJ is the outlier in the developed
The Bank of Japan’s (BoJ) recent decision to adjust its ETF purchase programme has given investors plenty to think about from the impact on asset prices to the longer term future of the country’s monetary easing policies. In this paper,
In its meeting last week, the Bank of Japan (BoJ) announced several changes in its monetary policy framework, but also confirmed its policy to keep yields under control. While other government bond markets have seen quite some volatility in the …
Abenomics at a glance Referring to the economic policies advocated by Prime Minister Shinzo Abe since his victory in the 2012 general election, Abenomics consists of three arrows: aggressive monetary policies, fiscal consolidation and a growth strategy. The key aim
Rates in lockdown for longer With the outbreak of the coronavirus hitting the global economy, central banks have stepped up to the plate by delivering significant amounts of easing. Official yields are now at or below zero for all developed
Fed, ECB, PBoC and the Boj
An overview of the challenges faced by the BoJ since 2013 The Bank of Japan (BoJ) will hold its monetary policy meeting on 19 September, with rising expectations that it will join the Federal Reserve (Fed) and European Central Banks
Central bank watcher: Time to deliver Fed: make life easy and do 50 ECB: A september to remember PBOC: Easing bij reform?
The Fed and the ECB have managed to firmly establish lower interest rates while pushing risk assets higher. Investors are sceptical amid high political and economic uncertainty but, at least for the time being, the central bank actions have helped
Key takeaways We move from underweight to neutral on US investment-grade (IG) and high-yield (HY) corporate bonds, resulting in a move from underweight to neutral for global IG and HY corporate bonds. We also move from underweight to neutral on
BII Global weekly commentary Key points The U.S. yield curve’s recent steepening offers a reminder that global factors – such as Bank of Japan monetary policy – help shape the curve. Global stocks finished last week flat amid escalating trade
Considering these policy announcements, we keep our USDJPY forecast range at 107–112 for the next six months. The Bank of Japan's (BoJ) ultraaccommodative monetary policy is one of the few vestiges of the 2008 global financial crisis. While other major
Key Messages Strong earnings season, but growth stocks underperform. Japan adjusts policy, but shouldn't spark a global selloff. Trade tensions mean it's still too early to dive back into risk assets.
The BOJ takes a step towards controlling the equity market, a shift that could generate fresh gains for Tokyo stocks Will market fortune favour a bold Bank of Japan? The BOJ has taken a radical step towards controlling the country’s
1. Fundamentals strong despite tech wobble. Facebook's disappointing results offered investors a reminder of the downside to over-concentration in a single stock. The shares at one stage appeared on track for a 20% single-day fall, equivalent to USD 150bn of
Global markets and multi-asset portfolios Our expectations are for GDP growth in Japan to remain satisfactorily above-trend: Despite some disappointing recent data releases, the country’s fundamental economic drivers remain healthy. Amid consistently disappointing inflation, the Bank of Japan seems likely
Global markets and multi-asset portfolios Our expectations are for GDP growth in Japan to remain satisfactorily above-trend: Despite some disappointing recent data releases, the country’s fundamental economic drivers remain healthy. Amid consistently disappointing inflation, the Bank of Japan seems likely
Fixed Income Perspectives The return of volatility has been the dominant headline since the beginning of the year. Fast forward to May as investors watched the ten-year yield break through 3% and reach seven-year highs. The shape of the yield
Regional view – Asia The Bank of Japan (BoJ) has had a complicated relationship with inflation. The central bank has for years, almost decades, endeavored to attract inflation in Japan through a variety of methods, and on one occasion jumped
Regional view – Asia So it's likely that Kuroda, if he is re-appointed, will maintain the BoJ's current policy tone in the short term to lift inflation closer to its preferred level.
Central Banks’ Normalization Series Fed normalization on tracks as inflation has no reason to falter: complacent U.S. bond markets. ECB at tapering stage with no reason to hasten tightening. BoJ anchor immune. Global bond yields normalization is slow, but we
Global central bank Focus Recent communications from the Federal Reserve suggest it is likely to begin shrinking (“normalizing”) its balance sheet this year. U.S. Treasury markets have responded with what amounts to a collective yawn. Why? And could this change?
Central Banks’ Normalization Series We expect the Fed to begin its balance sheet reduction “later this year” While the ECB & BoJ could initiate their tapering only in 2018 & 2019 respectively We believe that monetary agendas promise no trend
Central Banks’ Normalization Series Since 2013, Abe’s forceful first arrow has mainly managed to weaken the Yen by 40%. What next? Can the BoJ follow suit in the wake of Fed – and eventual ECB – tapering? Inflation says not
On the markets All eyes focused on central bank meetings: the US, Canada, the UK and Japan. Only the ECB (the week before) and BoJ stuck to the same message. Data on inflation showed it was slowing in Europe and
