The Bank of Japan maintained its record easing today after a Fed decision to taper policy helped weaken the yen to a five-year low against the dollar.
The board of the governor, Haruhiko Kuroda, kept its pledge to expand the monetary base by an annual 60 trillion to 70 trillion yen (Dh2.11 trillion) after a two-day meeting in Tokyo, in line with economists’ forecasts.
Mr Kuroda’s push for 2 per cent inflation underscores the difference in policy direction between the BOJ and the Fed, which could end its bond-purchase programme next year.
While Mr Kuroda said the BOJ was not targeting foreign exchange rates, the yen’s 17 per cent slide against the dollar this year is fueling consumer price gains and boosting profits, aiding the bid of the prime minister, Shinzo Abe, to end 15 years of deflation.
“The correction of an excessively strong yen has been a plus for Japan’s economy,” Mr Kuroda said. “Corporate profits have been boosted, sentiment among economic players has turned positive, stocks have risen and growth has accelerated.”
The yen fell 0.2 per cent to 104.43 against the dollar after reaching 104.59, its weakest level since 2008.
“The wind is at the BOJ’s back,” said Hideki Matsumura, a senior economist at the Japan Research Institute in Tokyo. “The Fed’s action confirms that the yen will stay on a weakening trend, and a US recovery will help lift Japan’s exports.”
Japan’s economy will continue a moderate recovery even with an increase in the sales tax in April, Mr Kuroda said. The central bank will monitor risks and adjust monetary policy as needed.
Inflation expectations appear to be rising, with gains in core consumer prices at about 1 per cent, the BOJ said, a number at the top of a range predicted last month.
Core consumer prices, the BOJ’s main inflation gauge that strips out fresh food, are forecast to rise 1.1 per cent from a year earlier in November, accelerating from a 0.9 percent gain in October, according to economists.
Mr Kuroda said there was no change in his view that Japan would reach the BOJ’s 2 per cent inflation target.
The Fed on Dec. 18 announced plans to trim its monthly bond purchases to US$75 billion from $85bn. It is likely to reduce its buys in $10bn increments over the next seven meetings before ending the programme in December of next year.
* Bloomberg
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
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Manchester City transfers:
OUTS
Pablo Zabaleta, Bacary Sagna, Gael Clichy, Willy Caballero and Jesus Navas (all released)
INS
Ederson (Benfica) £34.7m, Bernardo Silva (Monaco) £43m
ON THEIR WAY OUT?
Joe Hart, Eliaquim Mangala, Samir Nasri, Wilfried Bony, Fabian Delph, Nolito and Kelechi Iheanacho
ON THEIR WAY IN?
Dani Alves (Juventus), Alexis Sanchez (Arsenal)
In numbers
1,000 tonnes of waste collected daily:
- 800 tonnes converted into alternative fuel
- 150 tonnes to landfill
- 50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
25 staff on site
SPECS
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Other must-tries
Tomato and walnut salad
A lesson in simple, seasonal eating. Wedges of tomato, chunks of cucumber, thinly sliced red onion, coriander or parsley leaves, and perhaps some fresh dill are drizzled with a crushed walnut and garlic dressing. Do consider yourself warned: if you eat this salad in Georgia during the summer months, the tomatoes will be so ripe and flavourful that every tomato you eat from that day forth will taste lacklustre in comparison.
Badrijani nigvzit
A delicious vegetarian snack or starter. It consists of thinly sliced, fried then cooled aubergine smothered with a thick and creamy walnut sauce and folded or rolled. Take note, even though it seems like you should be able to pick these morsels up with your hands, they’re not as durable as they look. A knife and fork is the way to go.
Pkhali
This healthy little dish (a nice antidote to the khachapuri) is usually made with steamed then chopped cabbage, spinach, beetroot or green beans, combined with walnuts, garlic and herbs to make a vegetable pâté or paste. The mix is then often formed into rounds, chilled in the fridge and topped with pomegranate seeds before being served.
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German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5