BOJ Under Fire for Rate-Hike Timing After Market Meltdown

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Bank Of Japan,Market Turmoil,Nobuyasu Atago

(Bloomberg) -- The Bank of Japan’s monetary policy tightening last week has triggered a wave of criticism after it helped set off a historic plunge in...

-- The Bank of Japan’s monetary policy tightening last week has triggered a wave of criticism after it helped set off a historic plunge in Japanese stocks and contributed to global market turmoil — likely putting any plans for further interest-rate hikes on ice.“The BOJ needs to be humble about economic data and the markets,” said Nobuyasu Atago, chief economist at Rakuten Securities Economic Research Institute and a former BOJ official.

And that’s in a context in which the BOJ has ended its program of purchasing exchange-traded funds, a tool that officials might otherwise have deployed to keep stocks from free-falling.Until the market downturn the past few sessions, most economists had expected another BOJ rate hike by the end of the year, following hawkish language from Ueda. Last week, 68% in a Bloomberg survey had expected the policy rate to hit 0.5% by year-end, from the current 0.25%.

On Tuesday, data showed consumption remained weak in June while a rise in summer bonuses helped real wages to turn positive for the first time in more than two years. Still, others are supporting the central bank’s latest decision, and attribute the recent market turmoil more to US data and the Federal Reserve’s decision not to cut rates.

“If the market’s correctly pricing in a US recession, there’s of course a possibility that the BOJ decides against raising rates again this year.”Emotional Freddie Freeman returns to Dodgers as his 3-year-old son recovers from rare medical issue If Damon Jackson falls out of his fight against Chepe Mariscal on Saturday, Mariscal wants to shoot his long, long, long shot. If Jackson can't go, and featherweight champion Ilia Topuria is in the mood to travel to Vegas to save Mariscal's spot on UFC on ESPN 61 wHOUSTON, Aug. 05, 2024 -- Itafos Inc. is pleased to announce that it has entered into an agreement to sell its 100% interest in its Araxá project to a wholly-owned subsidiary of St George Mining Limited .

 

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