That isn't the first time the Japanese economy has shown signs of life. These signs appeared several times over the last three decades but eventually faded, pushing the world's third-largest economy from one swamp of stagnation to another.
The Bank of Japan on Tuesday announced that it is adjusting its yield curve control policy by expanding the trading on its 10-year yield target 0.23% to 0.50%, a decision expected to have major ramifications across the globe.
Zero interest rates are a policy of the past for most central banks worldwide, but not for the Bank of Japan.
Japan has now signed off on stimulus spending of $2.18 trillion, or about 40% of the country’s entire GDP.
U.S. stocks fell on Tuesday after China reported new SARS-like virus.
Bank of Japan lifts growth outlook, keeps easy money policy
Bank of Japan Governor Haruhiko Kuroda believes that Japan's export-driven economy needs a mixture of fiscal and monetary policies to withstand a global economic slowdown.
Higher open expected for the U.S markets Friday after the main stock index futures moved a bit higher in the morning.
The Bank of Japan on Wednesday decided to adopt a target for long-term interest rates in an overhaul of its massive stimulus program.
With the global economy showing few signs of rebounding and investors fretting about the limits of major central banks’ easings, the BOJ’s move came as a welcome relief for risk asset markets.
What would a 0.25 percent rate hike mean for Main Street? An average $6.45 a month tacked on to credit card bills and variable rate mortgage payments.
The U.S. Federal Reserve and the Bank of Japan will hold their respective two-day policy meetings Tuesday and Wednesday.
The U.S. Federal Reserve Open Markets Committee meets Tuesday and Wednesday to consider whether to raise interest rates immediately or put off action until the end of the year.
The soggy Asian start followed an uninspiring performance overnight on Wall Street where the Dow lost 0.2 percent and the S&P 500 shed 0.1 percent.
Japan’s central bank also suggested that a major overhaul of its stimulus program may be forthcoming.
The yen surged broadly after the Bank of Japan’s decision, hitting a 22-month high against the dollar and multiyear highs against the euro and sterling.
The trouble is that long-term focused foreign funds have turned bearish on doubts that Tokyo can pull Japan out of two decades of economic stagnation.
Next week's gathering in Japan is expected to yield a “go your own way” response from member nations on economic growth strategies.
Finance Minister Taro Aso said Monday that Tokyo was willing to intervene in currency markets if appreciation of the yen hurt the Japanese economy.
Stock markets traded broadly lower Thursday as investors reeled under the Bank of Japan’s decision to hold fire on stimulus.
The central bank held fire on expanding monetary stimulus despite fresh data adding to concerns about the state of the world’s third-largest economy.
The Bank of Japan makes its policy decision Thursday amid some speculation it could ramp up its already extensive monetary stimulus scheme.
Japan has been trying to drive its currency down in order to make its exports cheaper and strengthen corporate profits earned abroad.
Asian stocks were on the defensive Tuesday as investors braced for central bank policy meetings in the U.S. and Japan.
Big Week For Central Banks As US Federal Reserve Holds Meeting, Bank of Japan Expected To Ease Further
Policymakers from the Federal Reserve and the Bank of Japan will sit down this week to hash out next steps in an uncertain global economy.
One of the things investors were watching was the possibility that Japan's central bank will introduce negative lending rates.