According to minutes from the December meeting, the board of the bank appears to have gone through an intense debating session over bank policy.
(Photo: Bloomberg)
The bank's minutes shed light on the board split over the December measures
The minutes of the December policy formulated by the Bank of Japan were released on Wednesday. They helped to shed additional light on the internal split over the supplementary measures that were decided at that meeting. However, the skeptics warned about possible drawbacks.
At the December 17-18 meeting, the policy board of the central bank voted 6-3 to enable them to undertake a series of steps aimed at supplementing the massive asset purchase program. The board included an extension of average maturities of the bonds of the Japanese government being bought by the bank for 7-12 years. An extension of the Exchange -traded stock funds purchases of the Bank of Japan by Y300 billion per annum.
Some of the board members indicated that measures were required to smooth the asset purchases and dispel fears concerning the sustainability of purchase programs. The minutes indicated that such steps would empower the BOJ to undertake measures of additional easing in a fairly timely manner should that become necessary.
However, one member disagreed, indicating that such a move would cause a misunderstanding among the market participants as the asset purchase program nears its limit.
The central bank avoids identifying board members by name in the minutes customarily.
Since the Halloween easing that took place in October 2014 when Governor Haruhiko Kuroda scraped by with a 5-4 thin margin, the board of the bank has become sharply divided. Shinzo Abe, the Japanese Prime Minister, has tried to tip the balance of a section of the board in favor of the policies formulated by Mr. Kuroda to replace two of the retired board members with those who vehemently support aggressive easing.
The board of the bank appears to have gone through an intense debating session over details of supplementary measures. The majority of the members indicated that the maturity extension of debt purchases was quite necessary for ensuring smooth and flexible conduct of the JGB buying. A few of the members indicated that the bank could manage purchases without making the change.
Some of the members spurned the idea of creating an ETF purchase framework worth Y300 billion in addition to the major ETF buying scheme of Y3 trillion. This was designed to support the companies that were eager to invest and raise employee wages. One member indicated that the BOJ should avoid engaging in measures with features like those of industrial policies as the major characteristic.
At the most recent policy meeting that was held last week, the board of the central bank undertook a clear-cut measure of easing by setting the key interest rate below the zero mark to spur borrowing and lending. Beginning at the middle of this month, the Bank of Japan is expected to impose a negative 0.1% interest rate on a section of yen deposits that are parked by commercial banks at the central bank.
According to Richard Koo, negative rates are an act of desperation that are born out of despair
The negative interest rate policy formulated by the Bank of Japan will not solve the problems of Japan.
The Nomura Research Institute’s chief economist, Richard Koo, says that adoption of negative interest rates by the BOJ is a sign of despair because of the inability of inflation and quantitative easing measures to produce desired results. Lowering the bank’s interest rates is expected to have little effect in the country because many Japanese companies are trying to minimize the level of debt despite them having great balance sheets as a result of dearth of the domestic investment opportunities and debt trauma.
Mr. Koo also points out the fact that the private sector has managed to save a GDP net of 6.7% in 12 months through 2015’s third quarter despite the zero interest rates. Mr. Koo adds that major incentives for driving capital investment will be required to encourage the companies to spend again.
The USD/JPY shows a muted reaction
The USD/JPY is currently showing a somewhat muted reaction to the speech made by Governor Haruhiko Kuroda of the Bank of Japan.
Before the event, the currency was 119.66 but it has since dropped to 119.62. On Friday, the BOJ decided to adopt a negative interest rate to push the reserve rate into the negative territory. The steps taken by the BOJ appear helpless due to pressure from the Chinese economy’s slowdown and the tumble of commodity prices.
Mizuho Bank’s chief economist, Daisuke Karakama, said that they don’t want to welcome extra easing as had been previously experienced in October 2014. This was attributed to the confusion of using negative rates on a section of the yen deposits of commercial banks to the central bank.
The bank's minutes shed light on the board split over the December measures
The minutes of the December policy formulated by the Bank of Japan were released on Wednesday. They helped to shed additional light on the internal split over the supplementary measures that were decided at that meeting. However, the skeptics warned about possible drawbacks.
At the December 17-18 meeting, the policy board of the central bank voted 6-3 to enable them to undertake a series of steps aimed at supplementing the massive asset purchase program. The board included an extension of average maturities of the bonds of the Japanese government being bought by the bank for 7-12 years. An extension of the Exchange -traded stock funds purchases of the Bank of Japan by Y300 billion per annum.
Some of the board members indicated that measures were required to smooth the asset purchases and dispel fears concerning the sustainability of purchase programs. The minutes indicated that such steps would empower the BOJ to undertake measures of additional easing in a fairly timely manner should that become necessary.
However, one member disagreed, indicating that such a move would cause a misunderstanding among the market participants as the asset purchase program nears its limit.
The central bank avoids identifying board members by name in the minutes customarily.
Since the Halloween easing that took place in October 2014 when Governor Haruhiko Kuroda scraped by with a 5-4 thin margin, the board of the bank has become sharply divided. Shinzo Abe, the Japanese Prime Minister, has tried to tip the balance of a section of the board in favor of the policies formulated by Mr. Kuroda to replace two of the retired board members with those who vehemently support aggressive easing.
The board of the bank appears to have gone through an intense debating session over details of supplementary measures. The majority of the members indicated that the maturity extension of debt purchases was quite necessary for ensuring smooth and flexible conduct of the JGB buying. A few of the members indicated that the bank could manage purchases without making the change.
Some of the members spurned the idea of creating an ETF purchase framework worth Y300 billion in addition to the major ETF buying scheme of Y3 trillion. This was designed to support the companies that were eager to invest and raise employee wages. One member indicated that the BOJ should avoid engaging in measures with features like those of industrial policies as the major characteristic.
At the most recent policy meeting that was held last week, the board of the central bank undertook a clear-cut measure of easing by setting the key interest rate below the zero mark to spur borrowing and lending. Beginning at the middle of this month, the Bank of Japan is expected to impose a negative 0.1% interest rate on a section of yen deposits that are parked by commercial banks at the central bank.
According to Richard Koo, negative rates are an act of desperation that are born out of despair
The negative interest rate policy formulated by the Bank of Japan will not solve the problems of Japan.
The Nomura Research Institute’s chief economist, Richard Koo, says that adoption of negative interest rates by the BOJ is a sign of despair because of the inability of inflation and quantitative easing measures to produce desired results. Lowering the bank’s interest rates is expected to have little effect in the country because many Japanese companies are trying to minimize the level of debt despite them having great balance sheets as a result of dearth of the domestic investment opportunities and debt trauma.
Mr. Koo also points out the fact that the private sector has managed to save a GDP net of 6.7% in 12 months through 2015’s third quarter despite the zero interest rates. Mr. Koo adds that major incentives for driving capital investment will be required to encourage the companies to spend again.
The USD/JPY shows a muted reaction
The USD/JPY is currently showing a somewhat muted reaction to the speech made by Governor Haruhiko Kuroda of the Bank of Japan.
Before the event, the currency was 119.66 but it has since dropped to 119.62. On Friday, the BOJ decided to adopt a negative interest rate to push the reserve rate into the negative territory. The steps taken by the BOJ appear helpless due to pressure from the Chinese economy’s slowdown and the tumble of commodity prices.
Mizuho Bank’s chief economist, Daisuke Karakama, said that they don’t want to welcome extra easing as had been previously experienced in October 2014. This was attributed to the confusion of using negative rates on a section of the yen deposits of commercial banks to the central bank.
GCEX Secures MiCA Licence in Denmark as EU Crypto Regulation Takes Shape
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
