Reuters 15 TOKYO The Bank of Japan Monetary Policy Meeting Kuni Hiraku 20 and 21 days to inspect the effect of economic trends, national and international mitigation policies and comprehensive asset purchases funded pillars laid out in October

Reuters 15 TOKYO The Bank of Japan Monetary Policy Meeting Kuni Hiraku 20 and 21 days to inspect the effect of economic trends, national and international mitigation policies and comprehensive asset purchases funded pillars laid out in October.

Landing on the domestic economy has some possibility of additional relief as it moves within the Bank of Japan's traditional outlook is expected to be low. However, despite rising interest rates is continuing the implementation of comprehensive mitigation measures to control the focus of interest to analyze the background as the central bank is likely to discuss such scenarios in the future.

The December Tankan central bank announced on July 15, business sentiment of large manufacturers (DI) has deteriorated in seven quarters. Eco car subsidy ends and the economic slowdown abroad, and echoed the inventory adjustment, LCD TV, showed the central bank's economic outlook released in late October 2012, "Prospects for economic and price conditions" (in its report) and The Japanese economy, "Once the pace slowed after the economy improves, we recovered to a gradual recovery path," and shows the view of the contents of the Tankan is "almost in the range of expected" (leaders) are expected to be it.

10 U.S. dollars at the end of a reduction of interest rate differentials against the U.S. and progress in the high-yen to 80 yen level, remained stable since the mid-83 yen level in November. To recover one million units in mid-November, the Nikkei average stock price, that upward trend.

Federal Open Market Committee was closely watching 14 participants Nitigin (FOMC), the it was confirmed that there is no change to 6000 billion dollars in debt purchase plan, and some other time axis acceleration and purchasing policies additional mitigation has been pointed out was not shown. Therefore, the risk of a sharp downturn and stock market exchange is the starting point does not face the situation.

But despite the easing began buying bonds at the Bank of Japan comprehensive, 10-year bond yield of 0.8 percent in early October, Kon Tadashi rose 1.2 percent from the base units. Also bond yields around 0.2 percent from 0.1 percent two years rose to the level above.

Myougata Governor Shirakawa said in an interview in late November in Nagoya, "Japan's long-term rates have risen somewhat to reflect the movement of interest rates and the U.S.," the movement and linked to the U.S. market shows the view, even for mitigation inclusive with a focus on buying assets funded "effective buying government bonds does not mean that there is not. own purchases of bonds also is a factor lower interest rates," emphasized the effects of policies and .

In the current rising interest rates on central bank, also noting the trends of bond positions held by financial institutions, many who view the rise in U.S. interest rates and adjusting. U.S. interest rate hikes, have come up in stronger than expected economic data, but indications are heard in some respects and reflects the expectation that economic recovery is spreading to the optimism that the market's feet is skeptical. The Japanese economy continues to increase the likelihood of a slow recovery, strengthening Given the time axis of monetary policy, "continue to expand in the future interest rate rises in one direction is hard to believe" (another senior) analysts said.

However, U.S. interest rates affect domestic interest rates have continued to rise, the U.S. 10 year bond yields 3.4 percent level for the first time and a half and turn around the trend of the future uncertain. Market participants are fewer market participants, such as New Year holidays, concerned that increasing market volatility. An official of the Bank of Japan are concerned about the possibility of shock Ishi Yasu sudden change in various financial markets.

So far the central bank, when the economy increased downside risks, including sudden changes in financial markets and the policy shows the corresponding expansion of the fund bought 5.0 trillion yen in assets currently real. Steady stock prices amid stable exchange rate, the necessity to respond easing additional interest rate rises feet is poor, the inspection of the effect of relaxation inclusive, is expanded to a lively discussion about the trends in Interest Rate Markets Ru possible.

(Takemoto Statements Reuters News reporter, reporter; Yamakawa Kaoru edit)

[Articles]
[BOX] information about the recent remarks of the economic and monetary policy committee Nitigin
UPDATE1: the international financial system, now-Vice President Nitigin still unstable Yamaguti
The increase was suppressed when the fund type as possible side effects, including consideration of financial stability committee deliberations Nitigin Morimoto =
Automotive industry where demand for eating, which can reduce this recoil-Council Committee Nitigin Morimoto
Effect of growth foundation aid, overall assessment 熟Sazu machine-Nishimura, deputy governor Nitigin
.