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BOJ declares recovery underway

  • The Bank of Japan votes unanimously to stay the monetary policy course aimed at boosting the monetary base by ¥60-70T annually.
  • "Japan's economy is recovering moderately," the central bank says, marking an update to the language used in August, when Kuroda and company said the economy was "starting to recover."
  • At issue now is whether a sales tax hike (designed to help shore up the country's public debt) will derail the recovery and pressure BOJ Governor Kuroda to take further action to stimulate growth.
  • Full statement
  • The Nikkei (+0.1%) and the yen (-0.7%) are little changed on the news.
  • Equity and JGB ETFs: EWJ, NKY, EWV, EZJ, ITF, JSC, JPP, DXJ, SCJ, DFJ, FJP, JPNL, JPNS, DXJS, JGBT, JGBL, JGBS, JGBD
  • Currency: FXY, JYN, YCL, YCS
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Comments (8)
  • Saltyman declares laughing underway.
    5 Sep 2013, 03:40 AM Reply Like
  • Is this a joke?
    5 Sep 2013, 09:16 AM Reply Like
  • This would be the 25th recovery in 25 years of stagnation?
    Is this some arcane Japanese ritual?
    5 Sep 2013, 10:22 AM Reply Like
  • Rots r ruck.
    5 Sep 2013, 11:14 AM Reply Like
  • Reminds me of Hollande claiming that France is recovering, but of course the emperor has no cloths
    5 Sep 2013, 11:24 AM Reply Like
  • No longer does any country have normal business cycles of expansion and contraction. It's just all recovery, all the time.
    5 Sep 2013, 01:00 PM Reply Like
  • Well, we had our "Summer of Recovery" in 2010 (Joe Biden said so), so why should we doubt what the BOJ says? After all, governments and central banks are always honest about the results of their policies.
    5 Sep 2013, 02:16 PM Reply Like
  • You want to be careful not to get too carried away equating the US situation with Japan's situation.

     

    Japan's debt load as a percentage of GDP is twice as high as the US, and their demographic situation is a nightmare. Japan is already in the zone of insolvency, whereas the US is not.
    5 Sep 2013, 02:43 PM Reply Like
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