The Bank of Japan kept its monetary policy unchanged Thursday as inflation remains persistently low in the world’s third-biggest economy. Let’s get a brief insight into the BoJ Interest Rates Press Conference Overview.
21 December, Swissquote– The greenback continued to weaken for three straight sessions, as traders rotated into EUR and emerging market currencies.
US tax reform, not dollar positive
The Trump tax cut’s positive effect on equities is beginning to fade. Improvements in corporate earnings have already been priced in; bond markets are worried by the government debt needed to fund the cuts. Tax credits for renewable energy and electric cars are preserved, while the new tax code will decrease demand for gas and oil.
BoJ Interest Rates Press Conference Overview
As expected, the Bank of Japan kept rates unchanged at -0.1%, and the 10-year bond target stayed at 0%. BoJ officials expressed their confidence that the inflation will rise toward its target of 2%. The BoJ were also happy about the Q3 economic growth of an annualised 2.5%.
We believe this growth has cost too much, and it is unsustainable for the long haul.
The Swiss watch industry’s exports of traditional watches rose 5.8% to CHF 1.98 billion. Not only is this a boost to the sector with six years of sales declines, but a hopeful sign for 2018. Exports to China increased a whopping 39.8% to CHF 162 million, and the rest of Asia including Hong Kong and Japan also showed strong demand. The Swiss franc’s weakness can only help support sales
This article ‘ BoJ Interest Rates Press Conference Overview ‘ was written by Arnaud Masset, Yann Quelenn and Peter Rosenstreich, Market Analysts at Swissquote.
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