KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Hajime Takata, a policy board member of the Bank of Japan (BOJ), indicated that the central bank would consider adjusting its monetary easing policies if inflation trends develop as expected. Speaking in Ishikawa, Japan, Takata emphasized the need for policy adjustments if economic conditions align with the BOJ's projections.
Key Points from Takata's Remarks:
Policy Adjustments Based on Economic Data:
- Takata stated that it would be necessary to "adjust the degree of easing" in monetary policy if inflationary trends match BOJ forecasts. This aligns with recent comments from BOJ Governor Kazuo Ueda, suggesting that the BOJ will continue to normalize its policy settings as conditions permit.
No Immediate Rush for Policy Change:
- While hinting at potential rate hikes, Takata also highlighted the importance of monitoring financial markets, particularly following recent global market turmoil. This suggests the BOJ is not in a rush to adjust its policy immediately.
Positive Wage Growth Data:
- Takata's comments come after Japanese workers' real wages rose for the second consecutive month in July. Notably, wages for full-time workers increased by a record 3%, a closely watched indicator that excludes bonuses and overtime to avoid sampling issues.
Link Between Wage Growth and Inflation:
- The BOJ anticipates that solid wage growth will support inflation, aiming to achieve a virtuous cycle where rising wages boost consumption, leading to demand-driven price gains.
Market Expectations:
- Despite these signals, most economists predict the BOJ will maintain its current policy stance at the upcoming meeting on September 20, with many expecting potential policy changes between October and January.
Summary:
Takata's remarks suggest that the BOJ is prepared to adjust its ultra-loose monetary policy if inflationary trends align with its forecasts. However, the central bank remains cautious, prioritizing careful monitoring of economic data and financial market conditions before making any policy moves.
Comments
Post a Comment