Daily Report: Yen Mildly Lower, BOJ Discussed Rolling Back Negative Rate

Published 03/24/2016, 02:45 AM
Updated 03/09/2019, 08:30 AM

Yen is mildly lower today but stays mixed for the week so far. In the "Summary of Opinions at the Monetary Policy Meeting", BoJ noted there was discussion on rolling back negative rates. One of the board members said that "withdrawal from the Bank's negative interest rate policy is preferable." However, "there is a risk that a withdrawal from the policy soon after its introduction will confuse the markets and 4 impair the credibility of the Bank." Meanwhile, another member noted that "undoing the negative interest rate policy is not an option because the markets have started to take actions and many economic entities already have moved forward based on the policy."

In New Zealand, trade surplus widened to NZD 339m in February, much stronger than NZD 75m. Exports jumped 9.3% to NZD 4.25b with exports of milk powder, butter and cheese up 9.2%. Imports rose 2.8% to NZD 3.91b with strong 12% gain in consumption goods. However, Westpac Banking Corp economist predicted some deterioration in trade balance in near term. That would be due to sizeable rebound in oil import prices and depressed dairy export prices.

In Eurozone, Bundesbank chief Jens Weidmann complained that all things considered the decision to expand stimulus in March "went too far and the comprehensive package of measures didn't convince me". He admitted that the economic outlook "was very challenging for monetary policy and signaled the need for action." But "the most recent darkening of the inflation and growth outlook don't convince me of the alleged necessity to have to use this instrument, which I see as an emergency instrument."

Elsewhere, ahead of holiday, Germany will release Gfk consumer sentiment today. US will release retail sales , BBA mortgage approvals and CBI realized sales. US will release jobless claims and durable goods orders.

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