{"id":31803,"date":"2018-03-02T07:10:44","date_gmt":"2018-03-02T12:10:44","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31803"},"modified":"2018-03-02T07:10:44","modified_gmt":"2018-03-02T12:10:44","slug":"kuroda-shocks-markets-hinting-at-qe-end-nikkei-usdjpy-tumble","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31803","title":{"rendered":"Kuroda Shocks Markets Hinting At QE End; Nikkei, USDJPY Tumble"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-03-02\/kuroda-shocks-markets-hinting-qe-end-nikkei-usdjpy-tumble\"><span class=\"field field--name-title field--type-string field--label-hidden\">Kuroda Shocks Markets Hinting At QE End; Nikkei, USDJPY Tumble<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<div class=\"a2a_kit a2a_kit_size_32 a2a_default_style\" data-a2a-icon-color=\"#222\">\n<div><\/div>\n<\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>In addition to the suddenly escalating global trade war, overnight traders had one more thing to worry about: another central bank unwinding its QE program. This happened shortly after midnight ET, when BOJ Governor Kuroda unexpectedly announced that <strong>the Bank of Japan will start thinking about how to exit its massive monetary stimulus program around the fiscal year starting in April 2019<\/strong>, and that there could be policy change before the 2% inflation target is achieved, <strong>marking the first time he\u2019s provided any clear guidance on timing for normalizing policy.<\/strong><\/p>\n<p>&#8220;Right now, the members of the policy board and I think that prices will move to reach 2 percent in around fiscal 2019. <strong>So it\u2019s logical that we would be thinking about and debating exit at that time too,&#8221; <\/strong>he said. &#8220;I\u2019m not saying that the negative rate of 0.1 percent and the around 0 percent aim for 10-year bond yields will never change, but it is possible. We will be discussing that at each policy meeting.&#8221;<\/p>\n<p>In immediate reaction, Japanese shares fell sharply, the Nikkei sliding as much as 2.9% as the Yen surged as much as 0.5%, with the USDJPY tumbling below 106, a 15 month low, while JGB yields jumped across the curve.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/usdjpy%20slide.jpg?itok=4EpiKUQ_\" \/><\/p>\n<p><strong>&#8220;Kuroda\u2019s comments are important because he officially acknowledged a change in policy was likely before the end of fiscal year 2019,<\/strong>&#8221; said Rodrigo Catril, a currency strategist at National Australia Bank Ltd. in Sydney. \u201cA move sub-105 yen over the coming days wouldn\u2019t be surprising under the current risk off\/trade war concern environment\u201d<\/p>\n<p>In testimony that lasted about three hours, Kuroda seemed to try mitigating the negative market impact by saying that this doesn\u2019t affect his &#8220;overshooting commitment,&#8221; which pledges the BOJ to continue expanding the monetary base until inflation exceeds 2 percent in a stable manner.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Kuroda Shocks Markets Hinting At QE End; Nikkei, USDJPY Tumble In addition to the suddenly escalating global trade war, overnight traders had one more thing to worry about: another central bank unwinding its QE program. This happened shortly after midnight ET, when BOJ Governor Kuroda unexpectedly announced that the Bank of Japan will start thinking [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[57,85,2854,534,661,662,4311],"class_list":["post-31803","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-japan","tag-boj","tag-haruhiko-kuroda","tag-monetary-policy","tag-qe","tag-quantitative-easing","tag-trade-wars"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31803"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31803\/revisions"}],"predecessor-version":[{"id":31804,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31803\/revisions\/31804"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}