Forecasts
Forex Guides
Members

G-20 Gives Japan Stimulus Green Light as Yen Extends Fall


Bank of Japan (8301) Governor Haruhiko Kuroda won international endorsement of his stepped-up stimulus push, saying it emboldened him to press ahead with his campaign to defeat 15 years of deflation. Alert to signs of a slowing global economy, Group of 20 finance chiefs and central bankers yesterday praised this month’s measures by the BOJ aimed at delivering 2 percent inflation within two years. They signaled Japan’s focus on supporting domestic demand was strong enough to allow them to ignore the side-effects on their own economies of a sliding yen.

“Winning international understanding gives me more confidence to conduct monetary policy appropriately,” Kuroda told reporters after the meeting in Washington. “We will continue our qualitative and quantitative easing for the next two years to achieve the 2 percent price stability target.” The backing of Japan accompanied a G-20 warning that the world economy was weakening again as officials acknowledged “much more is needed” to reinforce it. They intensified pressure on the euro area to escape recession, pressed ahead with steps to stop crops-border tax evasion and disagreed over how to rededicate themselves to cutting debts. Repeating their promise of February to refrain from “competitive devaluation” without singling out Japan for criticism, the group of key industrial and emerging economies indicated an acceptance of the BOJ’s plan to double its monetary base through bond buying even if it undermines the yen. Yen’s Plunge The currency has declined 20 percent in the past six months and fell for a fourth day against the dollar yesterday to 99.52 at the end of New York trading. The currency slid to 99.95 on April 11, the weakest level since April 2009. “The global hope is that inflation will drive growth in Japan, finally awaking this sleeping giant,” said Douglas Borthwick, a managing director and […]



Invest In Yourself And Get Premium Analysis
Less than 20 cents a day
Major Currency Pairs Analysis
Forex Sentiment Analysis
Understand The Market
10 days money back guarantee

View Subscription Options

Would you like to connect?
Get notifications on new forecasts and articles.

Sign up to our emailing list and get your FREE Stop Losing and Start Winning in Forex Checklist!

Trending Forex Articles

  • G-20 Gives Japan Stimulus Green Light as Yen Extends Fall
  • EUR/USD Gold CorrelationG-20 Gives Japan Stimulus Green Light as Yen Extends Fall
  • G-20 Gives Japan Stimulus Green Light as Yen Extends Fall
  • G-20 Gives Japan Stimulus Green Light as Yen Extends Fall
  • G-20 Gives Japan Stimulus Green Light as Yen Extends Fall
  • G-20 Gives Japan Stimulus Green Light as Yen Extends Fall
TheGeekKnows