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Abe fears spike in long-term interest rates could hurt economy

Prime Minister Shinzo Abe expressed concern Friday that a spike in Japan's long-term interest rates could drag down the economy, as financial markets have recently become volatile due in part to the Bank of Japan's massive fund injection into the market. If the interest rates soar, that could "greatly affect the economy, public finances and the people's lives," Abe said during a parliamentary session.

Kuroda confident about overcoming deflation with BOJ's steps

Bank of Japan Governor Haruhiko Kuroda on Friday voiced confidence that the central bank's aggressive monetary easing steps are working to achieve an exit from more than decade-long deflation, while vowing to avoid volatility in long-term interest rates.

Aso says Japan aims to boost credibility by ending deflation

Finance Minister Taro Aso said Friday that Japan will try to boost its credibility by pulling the economy out of nearly two decades of deflation, a day after the 225-issue Nikkei Stock Average nosedived 7 percent. "Japan's credibility would increase if Japan can end a prolonged recession coupled with asset deflation" by implementing the "three arrows" of Prime Minister Shinzo Abe's economic policies, Aso said at a press conference.

S.Africa exchange rate unchanged amid high inflation

The South African Reserve Bank held interest rates unchanged Thursday in the face of high inflation, while warning of major risks to already mediocre growth. Reserve Bank governor Gill Marcus said the main interest rate would stay at five percent, despite the bank cutting its growth forecasts for the year. "There are a number of critical domestic issues that are contributing the vulnerability of the economy that need to be urgently addressed," Marcus said.

CORRECTED: S.Africa interest rate unchanged amid high inflation

The South African Reserve Bank held interest rates unchanged Thursday in the face of high inflation, while warning of major risks to already mediocre growth. A downbeat Reserve Bank governor Gill Marcus said the main interest rate would stay at five percent, despite the bank cutting growth forecasts for the year. The bank's rate-setting committee, she said, "is increasingly concerned about the deteriorating outlook for the South African economy."

S.Africa exchange rate unchanged amid high inflation

The South African Reserve Bank held interest rates unchanged Thursday in the face of high inflation, while warning of major risks to already mediocre growth. A downbeat Reserve Bank governor Gill Marcus said the main interest rate would stay at five percent, despite the bank cutting growth forecasts for the year. The bank's rate-setting committee, she said, "is increasingly concerned about the deteriorating outlook for the South African economy."

Need inflation pick-up before starting policy taper: Fed's Bullard

By Marc Jones LONDON (Reuters) - Federal Reserve policymaker James Bullard said on Thursday that while the U.S. economy was improving, he would like to be sure inflation was heading back towards target before the bank started winding down its support program. "I think the Chairman, as he always does, said the right thing which is it depends on the data," Bullard, head of the St Louis branch of the Fed and a current voting member, said at an OMFIF event.

Japan market gyrations underline economy's vulnerability while verdict still out on Abenomics

TOKYO - Japan's financial markets gyrated wildly Thursday, underscoring the vulnerability of its economy to a loss of investor confidence as Prime Minister Shinzo Abe attempts shock monetary easing to end two decades of stagnation. Interest rates, or yields, on 10-year Japanese government bonds briefly topped 1 per cent for the first time in a year on Thursday, following news that some U.S. Federal Reserve officials are willing to scale back the American central bank's stimulus efforts as soon as June if the economy perks up.

Bank of Japan moves after key bond yield spikes

The Bank of Japan unleashed a torrent of liquidity Thursday to quell government bond yields amid concern that higher long-term interest rates could squeeze mortgage payers and crimp spending. The central bank announced a two trillion yen ($19 billion) fund-supplying operation after the yield on the benchmark 10-year Japanese government bond hit 1.0 percent, its highest level in over a year. The BoJ is active in supplying finance to banks and other potential buyers in the bond markets every day, but the scale of Thursday's operation was large by recent standards.

Asian stock markets stage mild recovery after China factory data sparked big sell-off

BANGKOK - Asian stock markets staged a mild recovery Friday, a day after being routed by unexpectedly weak Chinese manufacturing and fears the Federal Reserve will start withdrawing its monetary stimulus. Japan's Nikkei 225 index, which plummeted more than 7 per cent Thursday, bounced back a sizeable 2.8 per cent to 14,892.57. South Korea's Kospi gained 0.1 per cent to 1,971.46. Benchmarks in Indonesia, Taiwan and mainland China also rose.
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