Chinese state-owned banks are expected to lower interest rates on existing mortgages, with the quantum of the cut varying for different clients and cities, in an effort to revive the property sector and boost the country's economy.
Japan's inflation is "clearly in sight" of the central bank's target, according to board member Naoki Tamura, suggesting the possibility of ending negative interest rates early next year.
Former Bank of Japan board member Goushi Kataoka believes that the central bank can only shift away from its easy monetary policy once it has achieved its 2% inflation target sustainably, with wage negotiations in 2024 playing a key role in this process. Kataoka expects the Bank of Japan to gradually remove its yield curve control and negative interest rate policies before exiting its easy policy. He also emphasizes the importance of cooperation between the Japanese government and central bank in achieving the inflation target.
China's measures to support the property sector are lowering monthly mortgage payments for homeowners but also reducing interest earnings on bank deposits, highlighting the challenge of promoting consumer spending in a weak economic climate.
Japanese long-term interest rates and the yen rose after Bank of Japan Governor Kazuo Ueda hinted at the possibility of ending the bank's negative interest rate policy.
The Bank of Japan's potential shift away from negative interest rate policy has ignited the Japanese Government Bond and currency markets, with the yen seeing its biggest rise in two months and the 10-year JGB yield reaching its highest point in almost a decade.
Speculation is growing that the Bank of Japan may be moving away from ultra-loose policy and negative interest rates, with its policy meeting being the highlight of the week in Asian markets.
The Bank of Japan is expected to maintain ultra-low interest rates and reassure markets that monetary stimulus will continue amidst China's economic struggles and the global impact of US interest rates.
The Bank of Japan (BOJ) may become the most significant uncertainty factor in global markets as it potentially unwinds its negative interest rate policy and yield curve control, which could have knock-on effects on risk assets, including cryptocurrencies.
The Bank of Japan has decided to maintain its ultra-loose policy and keep interest rates unchanged due to uncertainties in domestic and global economic growth.
The Bank of Japan policymakers are divided on how soon the central bank could end negative interest rates, with some members believing it may take a significant amount of time before revising the policy, while others believe the 2% inflation target has come within reach and could be assessed in early 2024. The central bank's commitment to ultra-loose monetary settings remains due to uncertainty regarding the achievement of its inflation target.
The strain from interest rate hikes is starting to impact the real estate market, particularly in Germany and London, as well as the Chinese property sector; corporate debt defaults are increasing globally; banking stress remains a concern, especially regarding smaller banks and their exposure to commercial real estate; and the Bank of Japan's tighter monetary policy could lead to a sharp unwind of investments, potentially impacting global markets.
The Bank of Japan is considering the eventual end of its ultra-loose monetary policy, with some policymakers discussing the conditions and timing of a future exit, according to a summary of opinions from their September meeting, leading to a rise in government bond yields.
Japan is expected to end its era of negative interest rates in the first half of 2024, which will have significant implications for world markets, particularly leading to more turbulence for US Treasuries due to potential fund repatriation by Japanese investors.
Nearly two-thirds of economists in a Reuters poll predict that the Bank of Japan will end its negative interest rate policy next year, as the central bank moves closer to phasing out ultra-accommodative monetary policy.
