Moody’s Downgrades Japanese Banks’ Outlook

Moody’s has downgraded Japanese banks’ outlook from stable to negative amid rising concerns about Japan’s continued ultra-loose monetary policy. According to Vice President Shunsaku Sato at Moody’s, the country’s accomodative monetary policy may be sustaining its economic growth but it has adversely impacted profitability of banks.

Sato also expressed his hope that the Bank of Japan maintains the monetary policy at its current state even though inflation continues to hold below the 2% target while growth falters. Currently, the short-term rates are maintained at -0.1% while long-terms yields have an interest rate of 0%.

Three of the largest banks in the country have announced lower annual profits on Wednesday, even as the Japanese economic situation continues to worsen.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers