FINWIRES · TerminalLIVE
FINWIRES

BOJ Minutes: Inflation Risks Outweigh Growth Concerns as Rate Hike Supported

By

Bank of Japan policymakers agreed at their June 15-16 meeting that moderate economic growth would continue, supported by strong corporate profits, wage growth, and energy subsidies, though growth is expected to decelerate due to Middle East-driven oil price hikes.

Members prioritized upside inflation risks over growth concerns, supporting a 25-basis-point rate hike to 1.0%, according to the minutes released Wednesday.

Inflation is projected to accelerate "clearly above 2%" as higher crude oil prices are expected to push prices up.

The minutes also showed broad support for continuing reductions in Japanese government bond purchases through March 2027 before maintaining monthly purchases at about 2 trillion yen from April 2027 to preserve market functioning.

One member dissented, arguing the BOJ should continue reducing bond purchases beyond that date.

Related Articles

Asia

Hubei Dinglong to Allot 1 Billion Yuan for Wealth Management Products; Shares Jump 9%

Hubei Dinglong (SHE:300054) will allocate up to 1 billion yuan for the purchase of wealth management products using its idle funds, according to a Tuesday disclosure to the Shenzhen bourse.The wealth management products will help with the efficient use of capital, it said in the filing.Shares rose 9% during the midday break on Tuesday.

SHE:300054
Asia

Inspace Creation Bags Malaysia Distribution Rights to Novah Furniture Products

Inspace Creation (KLSE:INSPACE), through its subsidiary Image Articulation, has entered into a distribution agreement with office furniture company Novah, according to a Monday filing with Bursa Malaysia.Under the pact, Image Articulation will be the exclusive distributor of certain Novah-branded office furniture products within Malaysia.The agreement is initially for two years starting Aug. 1, and will be automatically renewed for an additional two years if Image Articulation achieves at least 80% of the applicable sales targets.

KLSE:INSPACE
Asia

Hanwha Aerospace Ends KRW455 Billion Supply Contract with UK's Vertical Aerospace

Hanwha Aerospace (KRX:012450) said it terminated a 454.8 billion won contract with U.K.-based Vertical Aerospace, according to a Tuesday filing with the Korea Exchange.The contract, signed in August 2022, involved the development and supply of electromechanical actuators, tilting systems and blade pitch systems for Vertical Aerospace's VX4 aircraft.The South Korean aerospace company said the decision was made by mutual agreement following changes in market conditions and business direction relative to the project's original objectives.Hanwha said the companies simultaneously signed a memorandum of understanding to maintain their cooperative relationship and lay the groundwork for future collaboration on similar projects.Shares of Hanwha Aerospace jumped over 10% in recent trade.

KRX:012450