BOJ just thru a hand grenade in the mix ... volatility become big now
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BOJ just thru a hand grenade in the mix ... volatility become big now
Dairy prices down overnight …whole milk powder down 4%
Not a good end to year
BOJ finally trying to close the tap of cheap money ...this shud help increase effective inter bank rates thus mortgage etc without need for stronger Central banks action ...this is actually good for worldwide Inflation control
World can do well without any cheap source of funds though currency risks do make it little complicated to use cheap Japanese funds in other countries !
I don't really understand the significance but suppressing yields at a range of .5% to -.5% instead of zero assuming they aim for the middle of their target range is a big nothing burger isn't it?
To me it sounds more like trying to sound less crazy without doing anything.
How the yen still has any value is beyond my understanding.
if they are normalizing policy it will have big impacts on many markets around the world in time. japan is one of the biggest global investors mainly because they had to search for yield cause japan offered nothing. normalisation will cause some money to flow back to japan
Agree ...thats why wrote " Biggest source of cheap funds " ...trend will start to reverse ...resulting in Dearer money everywhere ...its helpful for Central Banks as it will reduce money supply in their economies without they needing to work harder to get those tight monetary conditions ...thus helping in Inflation fight but also helping in actually reducing terminal rates required and higher for longer requirements to do the same job ...as now they get additional support from money returning home ie to Japan ...that trend had caused great trouble for long time ...search for Global Yield theme !!
Thanks, that makes sense. I had thought they were printing faster than everyone else. Assuming a growing balance sheet indicated money printing going on.
Quick google search Japan between 2010 and 2020 up roughly 200% and the USA up 300% according to trading economics so relatively the same. On that basis alone the yen should have strengthened against the USD.
https://tradingeconomics.com/japan/c...ry%20of%201970.
https://tradingeconomics.com/united-...-balance-sheet
Look at NZ Adrian obviously not wanting our dollar to strengthen and to be like other important central bankers. I had thought he only doubled the size of the balance sheet that chart shows a bit more than doubling. Now I am unsure what these figures represent or if they are accurate.
https://tradingeconomics.com/new-zea...-balance-sheet
Tesla getting obliterated.