BoJ Policy

Stock market today, August 23, 2024: Foreign Institutional Investors (FII) buy over Rs 1,300 crore, Orient Technologies IPO to close today and other key things to consider while trading on Friday

In some ways, investor complacency after such a long period of steady BOJ policy made the likelihood of jumpy markets inevitable when it came time for Japanese authorities to exit

India, analysts said, remains in a relatively better position amid strong fundamentals. Though valuations remain a concern, investors can use markets correction to buy quality stocks for the long-term

Indian stock market is much more resilient in the face of a US downturn and related Wall Street sell-off than the likes of Japan, Wood said

The Bank of Japan raised its key interest rate Wednesday to about .25% from zero to about 0.1%, acting to curb the yen's slide against the U.S. dollar. The move was widely expected, and the yen gained sharply against the dollar ahead of Wednesday's decision, trading at 152.75. But the dollar rebounded slightly after the decision, to 153.17 yen. Share prices in Tokyo slipped 0.2% after the decision, to 38,463.18 after the decision. The central bank has kept interest rates near or below zero for years, seeking to spur inflation in hopes that would sustain stronger growth for one of the world's largest economies. That strategy has proven controversial. It did help to end a prolonged bout of deflation, or falling prices. But since wages failed to keep pace with price increases, consumers have tended to spend less rather than more. Still, the bank said conditions warranted a change. A weak yen has pushed prices in Japan higher since it makes imported gas, oil and other necessities more

In a widely expected move, the Bank of Japan kept its ultra-low interest rates unchanged. It also made no change to its dovish policy guidance.

Former Governor Haruhiko Kuroda deployed QQE in April 2013, aiming to shock the public out of a deflationary mindset with heavy money printing, and fire up inflation to the bank's 2% target

Suzuki said the recent rise in prices was driven mostly by higher global fuel costs, rather than any increase in import prices from a weak yen

The BOJ said last week it would buy an unlimited amount of 10-year government bonds at 0.25% to prevent rising global yields from pushing up domestic borrowing costs too much

The Bank of Japan may end its pandemic-relief funding programmes in March as corporate funding conditions have improved significantly from the cash crunch last year caused by the COVID-19 crisis

Kuroda added that there was no limit to monetary policy