- we should be cautious about fallouts from Russia/Ukraine conflicts
- need to guard against risks of earlier-than-expected normalisation of monetary policy, supply-chain disruptions and rising inflation pressure
- we remain committed to continue with support measures to maintain financial stability and long-term fiscal sustainability
- downside risks to regional economies could cause volatility in financial markets and capital flows
Archives of “May 12, 2022” day
rssBOJ Summary of April meeting – “yen’s depreciation works positively”
Bank of Japan summary, Headlines via Reuters:
- weak yen is positive for economy when output gap is still big, trend inflation is very low
- must be vigilant to chance of unexpected tail risk triggered by Ukraine crisis
- Japan’s inflation excluding energy remains very low, situation different from US, Europe
- Japan’s consumer inflation likely to move around 2% for time being from April, but price rise exceeding 2% won’t be sustainable
- hard to achieve the BOJ 2% inflation target as the expected rise in inflation is driven by temporary factors
- its crucial that wage hikes, being seen at present by big firms, to spread to small firms in order for broader wages & inflation to rise sustainably
- this is a risk prices may come under downward pressure if medium & long term inflation expectations do not rise sufficiently
- the Bank of Japan much continue to support the economy with its current powerful monetary easing
JP Morgan still appears to be unwavering on liking equities
JPM are not jumping in all bullish on stocks, but they don’t appear to be overly bearish either. This snippet conveying thoughts from their recent ‘Global Markets Confernce’ (held in Paris):
- A majority of investors is not looking to add risk
- but they appear to have already largely de-risked to neutral or short positions
- Only 29% are long and looking to stay long while 18% of those who are long are looking to reduce risk further.
‘Twas another perturbing day for stock market bulls: