Daily Archives: January 26, 2010

Standard Poor’s ratings agency cut its outlook on Japan’s AA long-term sovereign debt rating to negative from stable, citing reduced wiggle room on fiscal policy and voicing disappointment with the government’s budget
consolidation plans. The yen fell sharply against the dollar and the euro, although analysts said they expected financial markets to take the news in their stride (from Reuters).

Robin Harding

In essence, the Bank of Japan has done nothing and said nothing after its monthly meeting today. Policy remains on hold and pretty much the only change in language is to note the effect of higher oil prices on deflation (it’s a bit less severe).

Of more interest are the new forecasts of the policy board:

Policy board members make point estimates, the highest and lowest are excluded, and the numbers given are the range and median of what is left. Read more