BOJ executives to speak as market rout tests rate hike resolve
Rewrites, adding BOJ deputy governor Uchida's scheduled speech and central bank background
By Leika Kihara and Yoshifumi Takemoto
TOKYO, Aug 6 (Reuters) -The Bank of Japan is facing fresh communication challenges as last week's decision to raise interest rates, coupled with U.S. recession fears, roils financial markets and cloud the outlook for further rate hikes.
The first test will come on Wednesday when BOJ Deputy Governor Shinichi Uchida will deliver a speech and hold a news conference at the northern Japan city of Hakodate.
A career central banker with deep knowledge of the BOJ's monetary settings, Uchida is seen as a mastermind of the bank's rate hike path and communication.
In a speech in February, Uchida set out the BOJ's plan on how to unwind a complex set of stimulus measures that laid the groundwork for its decision a month later to end negative interest rates and bond yield control.
"Given the latest market rout, Uchida is likely to offer a message aimed at soothing market jitters about the BOJ's rate hike path," said former BOJ board member Takahide Kiuchi.
BOJ Governor Kazuo Ueda is also likely to attend a special parliament session to be convened later this month to discuss the market rout, a government source said.
Senior officials from the ruling and main opposition parties agreed on Tuesday to convene the lower house financial affairs committee session, where Ueda will be asked to speak, the source said, confirming an earlier report by Japan's Jiji news agency.
It was not clear when exactly the session will be held. Japan's government spokesperson could not be immediately contacted.
The BOJ raised interest rates last week to levels unseen in 15 years and signaled its readiness to hike borrowing costs further on growing prospects that inflation will durably hit its 2% target backed by solid wage growth.
The move, coupled with weak U.S. data that stoked fears of a recession in the world's largest economy, led to a global market rout with Japan's Nikkei average .N225 suffering on Monday its worst selloff since the 1987 Black Monday crash.
The Nikkei soared more than 8% to above 34,000 in the opening minutes of trading on Tuesday, rebounding sharply from the previous day's 12.4% plunge.
Reporting by Leika Kihara and Yoshifumi Takemoto; Additional reporting by Satoshi Sugiyama; Editing by Himani Sarkar and Muralikumar Anantharaman
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
