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BoJ’s Kataoka counters hawkish remarks with calls for more easing

While the market has not yet digested the recent hawkish commentaries from the Bank of Japan (BoJ) policymakers like Governor Kuroda and board member Suzuki, another board member Goushi Kataoka countered that hawkish rhetoric by calling for more easing. Speaking with Mainichi news agency last week, BoJ board member Hitoshi Suzuki suggested that negative interest rates and yield curve control to keep the 10-year yield close to zero might be hurting the country’s financial institutions and that might hamper effective implementation of monetary policies, however, board member Kataoka countered those views by suggesting that the central bank must expand stimulus further to achieve its price target easily, so that the prolonged monetary easing doesn’t hurt the country’s banking system. Kataoka, the sole dissenter to last month’s decision to keep monetary policy steady, said it was premature to debate an exit strategy from its massive stimulus program. Kataoka dissented to the decisions in September and October to keep policy steady. In October, he also called for adopting steps to push down 15-year bond yields to below 0.2 percent.

Despite almost 5-years of monetary easing and despite Bank of Japan’s (BoJ) balance sheet approaching 100 percent of the GDP, inflation remains low at just 0.7 percent.

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2017-12-18 08:05:21
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December 18 09:00 UTC Released

ITGlobal Trade Balance*

Actual

4.953 Bln EUR

Forecast

Previous

3.99 Bln EUR

December 18 09:00 UTC Released

ITTrade Balance EU*

Actual

0.666 Bln EUR

Forecast

Previous

0.469 Bln EUR

January 9 11:00 UTC 3179431794m

BRRetail Sales MM*

Actual

Forecast

0.35 %

Previous

January 9 11:00 UTC 3179431794m

BRRetail Sales YY*

Actual

Forecast

3.20 %

Previous

January 9 11:00 UTC 3179431794m

BRRetail Sales YY*

Actual

Forecast

3.20 %

Previous

January 9 11:00 UTC 3179431794m

BRRetail Sales YY*

Actual

Forecast

3.20 %

Previous

January 9 11:00 UTC 3179431794m

BRRetail Sales MM*

Actual

Forecast

0.35 %

Previous

January 9 11:00 UTC 3179431794m

BRRetail Sales YY*

Actual

Forecast

3.20 %

Previous

December 12 09:30 UTC 86178617m

GBRPIX YY

Actual

Forecast

Previous

4.2 %

December 12 09:30 UTC 86178617m

GBPPI Input Prices MM NSA

Actual

Forecast

Previous

1 %

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