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ECB also reduced the start of quantitative easing: gather attention to the Bank of Japan in the direction of

ECB also reduced the start of quantitative easing: gather attention to the Bank of Japan in the direction of

27 October 2017 | 9:05 am

· ECB is in the Council of 10/26, it decided to reduce the monthly bond purchases to 30 billion euros from 60 billion euros. On the other hand, it deferred from inflation sluggish, relaxation continuous enhancement, deposit rates are negatively 0.4%. · Government bond purchases reduced provisions because it was suggested by the Council in September route. The reform plan execution for the euro strengthened to be discussed at the December summit meeting of many disorders, the time being the euro bullish material is scarce. · The direction of monetary policy in Japan has been divergence since the Japanese financial crisis of the mid-1990s. For the time being, the movement of the Bank of Japan is noted. In next week’s policy meeting, quantitative easing nuances and to continue, in the last meeting, mitigation measures is not whether the deliberations committee members voted against presenting any counterproposal attention enough. Monetary policy maintained the determination of the ECB In the Council of 26 days, the central bank deposit rates while defer to minus 0.4 percent, decided the reduction of the monthly bond purchases to 60 billion → 300 billion. Purchase price reduction, which had been suggested by the Board of last September, the deadline for relief from such as it was postponed to September next year from December this year, interest rates were generally decline . Exchange Along with this also, moved to a slightly weaker euro. After the Board of Directors in September, Draghi ECB President of the euro, but it once the euro is progressing despite the restraint, since the beginning of October, weaving gradually reduced bond purchases, after the announcement 1 yen strength against the euro It became a . The European economy: bad loans settles lacks momentum to the economy. Smoldering political turmoil Eurozone problems, similar to other developed countries, is that there is no momentum in wage growth rate to the inflation rate . However, when compared to other developed countries, such as the consumer confidence index has been recovering to the level for the first time in 10 years, the trend of recovery is remarkable . Confidence Index, from becoming the leading index of the consumption trends of the individual, in the future, to expand consumption, is likely to gain momentum in turn inflation. In addition, with respect to the vulnerability of the financial system, we have finally managed to pick up in the recovery of the economy . Financial and economic concerns factors have rapidly retreated. On the other hand, Spain’s Catalonia, independent problem, unpredictable conflict between states and the central government has a serious problem. Already, in addition to the company bank, the major banks such as Sabadell bank determines the head office relocation from the Catalan, there while also promoting the transfer company of other industries, is a concern due to the economic recession, the weakening of the financial system . In other regions, still protectionist movement to be to put the distance from the EU is not settled, it is expected to be also carried out general elections in Italy until the spring of next year. Although the feet are calm even extreme right-wing of the movement, smoldering it is still uncertain. Eurozone material flame. The time being, increased attention to the monetary policy of the Bank of Japan As the material related to the future of the euro area, at the Euro Summit of 12 October, but there is a reform discussion for the euro strengthening, including the Spain-Catalonia problem, in facing the internal affairs in each country, reform difficulties and it is likely. For this reason, the time being, further euro bullish material would be difficult to leave. Next week refrain from Japan’s Monetary Policy Meeting and and the US FOMC is. The United States has already announced the reduction start of government bond purchases losses. On the other hand, the next rate hike will occupy a lot is how to read the December. Rather, attention is a monetary policy trends in Japan. Past more than 40 years, the direction of monetary policy in Japan , the time difference was linked largely with the United States and Europe even. Over the continued facing in a direction different from a long period of time is the only time of the Japanese financial crisis of the mid-1990s . In this decision of the ECB, the direction of monetary policy has raised the possibility that the Japan of “traveling alone” for the first time in 20 years. THE WEEK policy meeting, although it is likely that all policies are maintained, the Bank of Japan, in the future, or to follow the tightening of other countries, or, say whether to cut again rudder easing the direction of nuance is noted. Especially, Prospects report presented on the same day, how much the inflation expectations value is indicated, it expected is likely to be lowered, in which case, whether countermeasures are indicated focus. In the last meeting, “2% of the price target is not sufficient mitigation measures is to achieve,” said Kataoka deliberation committee members voted against it, analysis and that it form the basis of, the attention be to present some additional mitigation plan for this It deserves. If a large decrease in the width of the prices expected, will the possibility of mitigation if shown counterproposal realistic mitigation measures is increased. Otsuki奈那 Monex Securities chief analyst [Than Related Links Monex] · Nikkei Rento record of – the Nikkei average to average year-end 25,000 yen and nine of principle · Nikkei attention to the FRB chairman personnel and the ECB Executive Board average Rento record to record an update of the – US banks leading each row of the 3Q Financial Summary and immediate outlook – Check the large stocks of upside expected before the earnings announcement – the strong performance stocks – further tailwind future is expected to review the inbound-related stocks? ~

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