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🌏 | Focus: Vaccination rate makes the currency bright and dark, will the yen continue to depreciate in the near future?


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Focus: Vaccination rate makes the currency bright and dark, will the yen continue to depreciate in the near future?

 
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By keeping the policy interest rate at 0.1%, the lowest level ever, and maintaining the asset purchase limit, it is said that it will not be a monetary tightening, but the market is aware of the "exit".
 

Hiroko Hamada [Tokyo XNUMXth Reuters] – The inoculation rate of the new coronavirus vaccine divides the light and dark of each country's currency ... → Continue reading

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Wikipedia related words

If there is no explanation, there is no corresponding item on Wikipedia.

Policy interest rate

Policy interest rate(Seisaku Kinri,British: bank rate) IsCentral BankBut the generalbank(Commercial bank)LoanWhen doinginterest rate.

Central bankFinancial PolicyDetermined byBusinessIs set high when is good and low when the economy is bad. This will help when the economy is goodSavings,loanInterest rates have risen,currencyThe distribution of is suppressed. When the economy is bad, interest rates are lowered, which has the implication of promoting currency circulation.

Policy interest rates in Japan

Official discount rate

1994(6)9Up toPrivate bank Ofinterest rate TheOfficial discount rateIt was regulated to interlock with (Kouteibuai)[1].. Official discount rateBank of JapanThis is the base interest rate applied when the Bank of Japan lends to a private bank. Changing the official discount rate is equivalent to changing the market interest rate in Japan, and the BOJ operates the official discount rate.Financial PolicyCould be done. Therefore, the official discount rate has long served as a policy interest rate for Japan.

But,1994(6)10In addition, private bank interest rates are completely liberalized[1], It is no longer possible to use the official discount rate to manipulate private bank interest rates. The Japanese economy continues to deteriorate, and in the past, the official discount rate should have been lowered to lower interest rates.1995(Heisei 7) From January2001(13)2Until the official discount rate was not lowered, it remained at 0.5%.

After full deregulation of interest rates on private banks, private banks operate and raise funds instead of manipulating official discount ratesMoney marketInterest rate (Unsecured call overnightContinue monetary policy by manipulating the interest rate. In particularOpen market operationsWill allow the Bank of Japan toGovernment bond,BillBuyBuying operation(Buy operation) And continued to lower interest rates. Until March 1995, the official discount rate isOvernight call rateThe operation of the official discount rate was important because it was set at a lower level, but the overnight call rate is lower than the official discount rate thereafter.[2].

Unsecured call overnight

1999 yearsZero interest rate policyByUnsecured call overnightWas set as an inducing target and played the role of a policy interest rate. The current official discount rate serves as a ceiling on interest rates in money markets. BOJ2000(12)8ToZero interest rate policyWas canceled,Financial insecurityTo prevent2001(13)2ToLombard loan systemWas introduced. Poorly managed private banks have poor credit, which makes them unable to borrow in the money market or, even if they can, borrow at very high interest rates. This could lead to financial insecurity. To prevent thiscollateralIf there is, the BOJ has decided to lend to a private bank at the official discount rate without restrictions. With collateral, private banks were able to control financial instability by guaranteeing borrowing at the official discount rate, no matter how high. After that, the BOJ gradually lowered the official discount rate.2001(13)May 9 OfAmerican terrorist attacksThe Bank of Japan has lowered the official discount rate to a record low of 0.1% as a result of heightened financial instability.2006(18)May 7To2001(13) The zero interest rate policy, which had been re-implemented from March, was lifted and the official discount rate became 3%.2007(19)May 2The official discount rate was raised to 0.75%, but it was 2013% as of May 5.

Name change of "official discount rate"

The Bank of Japan2006(18)May 8Changed the name of the statistics on "official discount rate" to no longer use the name "official discount rate"Standard discount rate and standard loan interest rateAnnounced.

This is because when the BOJ's operation target for controlling the financial markets is the interest rate on the money markets (interest rate for overnight unsecured calls/call rate), the Bank of Japan, which has been called the official discount rate until then, lends funds directly to financial institutions. This is because the base interest rate (base loan interest rate) has become less relevant as a policy interest rate, which is a measure of deposit and savings interest rates and bank lending rates. The official discount rate is the complementary lending system introduced in 2001 (Lombard loan system) Is the applicable interest rate, it will be the maximum interest rate when the BOJ induces the call rate.

Abolish interest rate target

In April 2013, the Bank of JapanQuantitative and qualitative monetary easing”, the operation target of financial market adjustment is from unsecured overnight call ratesMonetary baseWas changed to[3].

Introduction of negative interest rate and yield curve control

2016 Year of 1 MonthNegative interest rateSince the harmful effects of the introduction have come to be pointed out, at the meeting in September 2016, long-term interest rate operations should be performed using the limit operation of long-term government bonds (mainly 9-year bonds) (long- and short-term interest rate operations). became[4].

Policy interest rate of each country

The induced target interest rates of central banks of major countries are as follows.

Induced target interest rates (policy interest rates) of major central banks[5]
CountryName of induced target interest rateCharacteristic of induced target interest rate
British flag The United KingdomBank rateO/N, central bank deposit rates
Canadian flag カナダTarget for Overnight RateO/N, interbank
Australian flag Australiacash rateO/N, interbank
European Union flag Euro areakey ECB interest rateMain Refinancing Operation
(Mainly the operation interest rate for one week)
 New ZealandOfficial Cash RateO/N, interbank
 ã‚¹ã‚¦ã‚§ãƒ¼ãƒ‡ãƒ³Repo rate7-day central bank deposit/lending rates
Swiss flag スイス3-month Libor interest rate3 months, private bank offered interest rate
United States flag The United States of Americafederal funds rateO/N, interbank

footnote

  1. ^ a b Hideomi Tanaka, Deflationary Depression, The Deadly Sins of the Bank of Japan, Asahi Shimbun, 2010, p. 221.
  2. ^ Takashi Oshio, "Introduction to Economics for High School Students," Chikuma Shobo <Chikuma Shinsho>, 2002, 177 pages.
  3. ^ BOJ introduces "quantitative and qualitative easing" List of target balances for each assetNihon Keizai Shimbun January 2013, 4
  4. ^ 2% "Price stability target" and "Quantitative and qualitative monetary easing with long- and short-term interest rate manipulation": Bank of Japan
  5. ^ Shirakawa [2008] p.128 Table 7-1-1 Induced target interest rates of central banks of major countries (policy target) O/N represents overnight interest rates for unsecured calls.

References

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