365 articles
Bank of Japan Governor signaled further rate hikes despite an accommodative economy, reaffirming the central bank's commitment to policy normalization. Analysts see the comments as a key indicator of readiness to tackle inflation and align with global tightening trends.
Bank of Japan Governor Kazuo Ueda said the central bank will closely monitor yen movements and their impact on the economy and prices. The remarks come amid sharp yen fluctuations and concerns about import costs and inflation.
Bank of Japan Governor Kazuo Ueda said on July 25 that the impact of a proposed consumption tax cut on spending is "uncertain," raising doubts about the fiscal measure's effectiveness. The BOJ is closely watching economic data before any further policy moves.
Economists say Japanese PM Sanae Takaichi's consumption tax cut plan will likely do little for consumers and may worsen inflation. The move, though politically significant, risks straining the budget and complicating the macroeconomic outlook.
Kioxia Holdings Corp. announced on July 24 a net profit of 842.17 billion yen ($5.2 billion) for the three months through June, a 46-fold year-on-year increase, driven by strong sales of memory chips to data centers as AI demand soars. The company's flagship NAND flash memory products exceeded market expectations, and it plans to expand capacity to meet rising AI and cloud computing needs.
Bank of Japan Governor Kazuo Ueda said the central bank will closely watch the impact of the Kumamoto earthquake on domestic production and corporate supply chains. He highlighted the need to assess the disaster's effects on the regional and national economy.
The Bank of Japan kept its policy rate at about 1.0% on July 24, a week after raising it to a 31-year high, and upgraded its growth forecast for fiscal 2026 on stronger consumption. The central bank signaled a cautious stance, waiting for more data before deciding on further moves.
Japan's Finance Minister has refused to comment on possible currency intervention amid significant yen volatility, sparking speculation among investors and analysts. The silence from the official is being closely watched by the foreign exchange market for signals on future monetary policy direction.
The Japanese yen weakened back to around 160 yen per US dollar on July 25, after an overnight surge to 157.97. The move reflects market caution ahead of central bank policy signals and key economic data.
The Bank of Japan said foreign exchange developments are a key consideration for monetary policy amid significant yen volatility. Analysts see the statement as a signal of readiness to intervene if needed.
