Why Does The Bank Of Japan Stay Behind?

Kuroda Higashihiko's policy decision has not been blamed and has little to do with the small help of his overseas counterparts.

Federal Reserve officials hinted this week that they might raise interest rates at the December meeting.

This will push the US dollar to the yen, which will enhance the competitiveness of Japanese exporters and help push Japan up.

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"I feel that the Fed's tightening tendency is a good cover for Japan," said Stephen Jen, co-founder of SLJ Macro Partners LLP and Stephen economist of the former International Monetary Fund (IMF).

In a strip of water, China's central bank cut interest rates for the six time in less than a year, and adopted various stimulus measures to accelerate economic growth.

Although Japan

In the doldrums, economic growth weakened, and the BoJ decided on Friday to remain unchanged.

The reason why the BoJ is unwilling to act is a tacit reason. It is probably that the Central Bank of the United States and China, the largest trading partner of Japan, has given Kuroda Higashihiko a breathing space.

One of the biggest drag factors for Japan's economy is weak exports.

Export growth in September hit the lowest level in more than a year, and the slowdown in China offset the rebound in demand in the US and Europe.

Considering that exports to the US and exports to China account for about 20% of Japan's total exports, the two countries' monetary policy decisions are indeed closely related to Japan.

It helps.

Delagi, the European central bank governor, hinted at the possibility of further easing of the euro zone's economic downturn.

These are the latest help to Japan brought by large economies importing Japanese products.

"Other central banks are helping the BoJ," said Frederic Neumann, joint head of Asian economic research at HSBC Holdings [-0.08%].

"The further easing of the ECB and the PBOC should help stabilize Japan's demand overseas, and the Fed's interest rate hike will curb the rise of the yen.

What other reasons are there for others to help you fight this battle?

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According to a proposal by the Federal Reserve, the largest bank in the US may face a $120 billion capital and long-term debt shortfall.

The proposal is intended to ensure that the failure of these banks will not harm a broader financial system.

It includes Bank of America, New York Mellon bank, Citigroup, Goldman Sachs, J.P. Morgan chase, Morgan Stanley, road rich bank and Wells Fargo.

According to the Federal Reserve's regulations, banks such as Wells Fargo and Morgan chase will be required to hold enough bonds that can be converted into equity when they are in trouble. That is, the Federal Reserve hopes that these big companies will increase their long-term debt compliance. The same principle applies to the branches of large foreign banks in the United States.

According to the Federal Reserve rules, banks such as Wells Fargo and Morgan chase will be required to hold enough bonds that can be converted into equity when they are in trouble, that is, the Federal Reserve hopes that these big companies will increase their long-term debt compliance, and the same principles apply to large foreign banks branches in the United States.

Daniel Tarullo, the US Federal Reserve Chairman, said that by making the biggest bank failures even more controllable, it is the key step to solve the problem of "too big to fail".

In addition, Yellen, chairman of the Federal Reserve, said that the total loss absorption capacity (TLAC plan) is a key step in solving the problem of "too big to fail".

The proposal of the Fed applies to eight major banks in the United States, requiring that debt and capital buffers be not less than 16% of risk weighted assets before 2019, reaching 18% in 2022.

Six of the eight banks failed to meet demand, though officials did not point out.