The conditions for the BOJ to continue easing and widen the interest rate differential have been met due to a significant increase in US interest rates.
There were a series of important monetary policy meetings this week. The most noticeable was the US FOMC. Reflecting the upside of the US consumer price index last week, the market has factored in a 0.75 percentage point hike in advance. As a result, the interest rate was raised by 0.75 percentage points. However, the […]
FOMC, 75bp rate hike-July is likely to be 75 or 50bp and Fed chairman
At a regular meeting held on the 14th and 15th, the US Federal Open Market Committee (FOMC) decided to raise the main policy interest rate by 75 basis points (bp, 1bp = 0.01%). This is the largest rate hike since 1994. Federal Reserve Chair Powell has suggested that the July meeting will also raise rates […]
Will the dollar continue to rise along with the US dollar yield trend at the 115 yen level at one point?
The dollar yen was bought in the Tokyo market. At the BOJ decision meeting, growth prospects were raised, but there was widespread recognition that the market was within expectations. Market officials said last Friday that the Bank of Japan was discussing the normalization of monetary policy and could raise interest rates before reaching the inflation […]
Fed launches $600 billion corporate loan
The Federal Reserve Board (FRB) launched the “Main Street Lending Program (MSLP)” for SMEs on the 15th. This is the start of all emergency funding support for the new coronavirus measures. With a total of over $4 trillion (about JPY 430 trillion), it will have a risk of loss that a central bank has no […]
US dollar / yen increase due to reports of BOJ’s unlimited purchase of government bonds and double purchase of CP / corporate
Buyback of dollar yen is intensifying. Although it has fallen to around 107.35 yen, it suddenly rises to around 107.80 yen. It seems that the Nihon Keizai Shimbun has said that the BOJ will discuss purchasing unlimited government bonds and doubling the purchase of commercial paper (CP) and corporate bonds. (Source: Minkabu) A sudden move […]