BOJ Governor Ueda stated that Japan’s economy is recovering moderately but still has some weaknesses, with high uncertainties from economic conditions, prices, and global trade policies. He highlighted the growing impact of FX movements and firms' stronger focus on wage and price hikes. The BOJ will adjust easing measures as needed to achieve its price target sustainably.
Ueda also addressed uncertainties regarding U.S. trade policies, particularly tariffs, which have expanded rapidly. The BOJ will scrutinize their impact on the global and Japanese economies. He reaffirmed that the pace of future rate hikes will depend on data, with a review expected by early April, and did not rule out reconsidering the inflation target in the future.
Consumer sentiment has weakened amid concerns over market instability and government job reductions. Officials are particularly wary of inflation expectations, as consumer sentiment can reinforce price trends.
In December the projections saw GDP at 2.1%, Unemployment at 4.3%, PCE headline inflation at 2.5% and core also at 2.5%. The estimate for Fed Funds average was at 3.9% vs 4.4% currently.
US MBA mortgage applications for the week ending March 14, 2025, declined by 6.2%, reversing part of the prior week's 11.2% gain. The market index fell to 252.5 from 269.3, while the purchase index remained relatively steady at 154.7 versus 154.6 previously. However, the refinance index saw a notable drop to 794.4 from 911.3, indicating weaker refinancing activity. Meanwhile, the average 30-year mortgage rate inched higher to 6.72% from 6.67%, reflecting continued pressure on borrowing costs.
Dow industrial average +6.69 points. Yesterday, the index fell -260.32 points or -0.62%S&P index +13.09 points. Yesterday the index fell -60.46 points or -1.07%NASDAQ index +68 points. Yesterday the index fell -304.55 or -1.71%
In the European equity markets, indices are mixed :
German Dax -0.60%France's CAC +0.16%UK's FTSE 100 -0.24%Spain's Ibex -0.13%Italy's FTSE MIB unchanged2- year 4.054%, +1.2 basis points5-year 4.089%, +1.9 basis points10 year 4.294%, +1.3 basis points30 year 4.591%, +1.3 basis points
In other markets:
Crude oil is trading near unchanged at $66.75 after falling yesterday on peace hopes in Russia/Ukraine. Today the the cease-fire agreement of energy and infrastructure seems already to have been broken. Ukraine's Zelenskyy is expected to speak to Pres. Trump. The oil inventory data will be released later today. Thr private data released late yesterday showed:Gold is trading up $5.06 or 0.17% at $3039.80. A new record high at $3045.34 dollars was made in trading todayBitcoin is trading higher by $1065 and $83,770. This article was written by Greg Michalowski at www.forexlive.com. Read More Details
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