#14 Bank of Japan’s Policy Review – Olympic Torch Relay begins – North Korea’s Missile Launch – Green Ambitions – Miyagi Earthquake.
Here is a brief on biweekly (16th – 31st, March).
● The Tokyo Olympic torch relay started from the J-village sports training centre in the Fukushima Prefecture
● The Bank of Japan’s policy review seems to be a modest nudge with no major changes
● Japan stands in support of Taiwan in the China-Taiwan divide, as Chinese warplanes entered the air defence zone of Taiwan
● North Korea launched two ballistic missiles into the Sea of Japan, fueling tensions with Japan and the neighboring nations
● Amidst the global push to reduce carbon emissions, Japanese scientists find a greener way to produce hydrogen gas
● A 6.9 magnitude earthquake hit off the coast of the Miyagi Prefecture
Bank of Japan’s Policy Review.
● The Bank of Japan completed its three-month policy review. There seem to be no major changes in the state of Japan’s monetary policy. BOJ is the largest buyer of government bonds in the market. It has been pursuing quantitative easing, unprecedented yield curve control scheme, and negative interest rate policy. By doing all this, BOJ intends to encourage borrowing and push up consumer prices, and meet its 2 percent inflation target. Analysts fear the consequence of a distorted market mechanism as an effect of the prolonged ultra-low rate policy.
● A new Bloomberg article discusses the takeaways from the Bank of Japan’s policy review. They are as below:
“BOJ will allow the yield on 10-year government bonds to move 25 basis points on either side of the bank’s zero targets, a slightly wider range than investors assumed previously”.
“The benchmark interest rate will remain at minus 0.1%”.
Divya Suresh is an alumna of Takshashila Institution’s Graduate Certificate in Public Policy Programme.
The views expressed above are the author’s own and do not represent Takshashila Institution’s recommendations.