{"id":44495,"date":"2019-03-15T08:24:00","date_gmt":"2019-03-15T13:24:00","guid":{"rendered":"https:\/\/olduvai.ca\/?p=44495"},"modified":"2019-03-15T08:24:06","modified_gmt":"2019-03-15T13:24:06","slug":"rabo-the-world-is-banking-on-china-but-japan-points-to-our-future","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=44495","title":{"rendered":"Rabo: The World Is Banking On China (But Japan Points To Our Future)"},"content":{"rendered":"\n

Rabo: The World Is Banking On China (But Japan Points To Our Future)<\/a><\/h3>\n\n\n\n

Market comments<\/strong><\/p>\n\n\n\n

There is a saying in the market that if you want to see the future of monetary policy, you just have to look at Japan.<\/strong> Well, as expected, BoJ Governor Kuroda and his team decided to keep policy unchanged, despite a fresh downward adjustment of its economic assessment. Two out of the nine board members dissented, with one of them being very outspoken in favour of more easing, thus underlining the dovish slant. But, like in Europe, headwinds are mostly blowing from the external environment, leading to weaker exports and industrial output \u2013 according to the Bank. In essence, the Japanese economy is feeling the hurt from slower global growth as a result of Brexit, protectionism and the slowdown in China.<\/p>\n\n\n\n

And apparently Japanese monetary policy makers still have some hope the economy can recover from this downdraft pretty quickly <\/strong>or that any ongoing weakness would be offset by a better domestic economy. But when many central banks are thinking like that, you can be sure it won\u2019t add up! Or are we all banking on the Chinese now? Well, at least Mr. Draghi and Mr. Kuroda seem to be on the same page, with Kuroda saying this morning that \u201cChina\u2019s stimulus is pretty big and will have an impact\u201d<\/em>.<\/strong><\/p>\n\n\n\n

Even more worrisome is that refraining from action whilst keeping up a brave face perhaps only highlights that the central bank has ran out of options.<\/strong> Despite being arguably the most aggressive central bank in terms of monetary easing since 2008, underlying inflation\u2019s basically gone nowhere (inflation ex-food and energy being at a paltry 0.4% y\/y). And while there is an increasing chorus \u2013recently joined by finance minister Taro Aso\u2013 to lower or make more flexible the BoJ\u2019s 2% inflation target, Mr. Kuroda confirmed this morning that this is not (yet) the way to go.<\/p>\n\n\n\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Rabo: The World Is Banking On China (But Japan Points To Our Future) Market comments There is a saying in the market that if you want to see the future of monetary policy, you just have to look at Japan. Well, as expected, BoJ Governor Kuroda and his team decided to keep policy unchanged, despite a […]<\/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":[124,130,452,24135,535,24136],"class_list":["post-44495","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-china","tag-japan","tag-michael-every","tag-monetary-stimulus","tag-rabobank"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44495","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=44495"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44495\/revisions"}],"predecessor-version":[{"id":44496,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44495\/revisions\/44496"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}