BOJ holds steady on monetary policy for 2017
20 December 2016 Tokyo
Image: Shutterstock
The Bank of Japan has committed to maintaining its overnight interest rate at -0.1 percent and hold 10-year bond yields at zero percent going into 2017.
At the central bank’s latest monetary policy meeting, the policy board agreed to an annual pace of increase of JPY 80 trillion (USD 680.7 billion) worth of Japanese government bonds.
The central bank will also purchase exchange-traded funds and Japan real estate investment trusts so that their amounts outstanding will increase at annual paces of about JPY 6 trillion (USD 51 billion) and about JPY 90 billion (USD 765.8 billion), respectively.
In its briefing on the results of the meeting, the central bank said: “Japan's economy has continued its moderate recovery trend. Overseas economies have continued to grow at a moderate pace, although emerging economies remain sluggish in part.”
The central recently also wade into the debate around the proposed rule regarding the cross-border application for swap dealers and major swap participants, which the US Commodity Futures Trading Commission is currently receiving feedback on.
The central bank stated that it saw the costs outweighing the benefits and requested that the proposal be reconsidered.
“In particular, we believe that the transactions with a foreign branch of US swap dealer or foreign consolidated subsidiaries and the transactions cleared by a central counterparty or subject to margin requirements should be excluded from the threshold calculation for other non-US persons,” it added.
At the central bank’s latest monetary policy meeting, the policy board agreed to an annual pace of increase of JPY 80 trillion (USD 680.7 billion) worth of Japanese government bonds.
The central bank will also purchase exchange-traded funds and Japan real estate investment trusts so that their amounts outstanding will increase at annual paces of about JPY 6 trillion (USD 51 billion) and about JPY 90 billion (USD 765.8 billion), respectively.
In its briefing on the results of the meeting, the central bank said: “Japan's economy has continued its moderate recovery trend. Overseas economies have continued to grow at a moderate pace, although emerging economies remain sluggish in part.”
The central recently also wade into the debate around the proposed rule regarding the cross-border application for swap dealers and major swap participants, which the US Commodity Futures Trading Commission is currently receiving feedback on.
The central bank stated that it saw the costs outweighing the benefits and requested that the proposal be reconsidered.
“In particular, we believe that the transactions with a foreign branch of US swap dealer or foreign consolidated subsidiaries and the transactions cleared by a central counterparty or subject to margin requirements should be excluded from the threshold calculation for other non-US persons,” it added.
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