05-24-2016, 11:53 PM
The Bank of Japan (BoJ) made a "fateful miscalculation" when it opted to hold interest rates at its meeting last week, Goldman Sachs has said. The BoJ maintained its -0.1 percent deposit rate and its 80 trillion yen ($0.8 trillion) base money target on Thursday, surprising market watchers who had forecast further stimulus measures.
Bank of Japan made ‘fateful’ error last week, says Goldman Sachs
King’s starting point is that the 2008 crisis wasn’t an anomaly but the natural consequence of bad incentives that are still baked into money and banking -- and so quite likely to create another, possibly even greater, crisis.
The Book That Will Save Banking From Itself - Bloomberg View
You’ll have noticed that the yen and Nikkei were displeased yesterday. Like throw your toys out of the pram because you didn’t get what you wanted displeased. Like one of the worst one day JPY moves in the past decade displeased. What they didn’t get, and what prompted that tantrum, was any auld bit of easing from the Bank of Japan. And here are eight potential reasons why the BoJ disappointed, from SocGen:
Explaining the BoJ’s reticence | FT Alphaville
All of Japan's jawboning on the yen - and expectations the Bank of Japan (BOJ) will need to further ease policy - are unlikely to weaken the currency for long, JPMorgan Private Bank's Asia forex boss told CNBC. Ben Sy, head of fixed income, foreign exchange and commodities for Asia at JPMorgan Private Bank, said Japanese companies and investors still had substantial offshore assets.