Energy Pulse: in brief (29 September)

China's factory activity expanded for the first time in six months in September, an official survey showed on Saturday, adding to a run of indicators suggesting the world's ...

tweet: BOJ'S GOVERNOR UEDA: CONSIDERATIONS OF THE BOJ'S FINANCES DON'T PREVENT IT FROM IMPLEMENTING NECESSARY POLICIES. tweet: BOJ'S GOVERNOR UEDA: SUSTAINABLE AND STABLE ACHIEVEMENT OF BOJ'S 2% INFLATION GOAL IS NOT YET IN SIGHT. THERE IS STILL SOME DISTANCE BEFORE REACHING AN EXIT FROM EASY POLICY. tweet: BOJ'S GOVERNOR UEDA: IF BOJ'S CREDIBILITY DECLINES, TRIGGERED BY A DECLINE IN PROFITS AND CAPITAL, THIS WOULD HAVE ADVERSE IMPACT ON CONDUCT OF MONETARY POLICY. tweet: BOJ'S GOVERNOR UEDA: GIVEN THE CURRENT DISTANCE TO AN EXIT, I BELIEVE NOW IS RIGHT TIME TO DISCUSS TOPIC OF THE BOJ'S FINANCES AND MONETARY POLICY CONDUCT FROM AN OBJECTIVE PERSPECTIVE.Central Bank Finances and Monetary Policy Conduct It is my pleasure to have this opportunity to speak at the Japan Society of Monetary Economics. Today I will speak on the theme of "Central Bank Finances and Monetary Policy Conduct." This issue has been gaining heightened interest, with foreign central banks entering the exit phase. On the other hand, in Japan, sustainable and stable achievement of the price stability target of 2 percent has not yet come in sight, and there is still a distance to go before reaching the "exit." Given the current distance, however, I believe now is the right time to discuss this topic from an objective perspective. At the Japan Society of Monetary Economics held 20 years ago, I gave a speech on "The Role of Capital for Central Banks."1 My speech today is a sequel to that one, but the fundamentals are essentially unchanged. Nevertheless, taking into account the developments in monetary policy at home and abroad during the subsequent two decades, I would like to provide somewhat of a review, reflecting upon this important topic once again. At the time of my previous speech, the Bank of Japan had already implemented its quantitative easing policy and had started purchasing new financial assets, such as asset-backed securities. Moreover, amid the global disinflationary trend, other central banks were beginning to consider unconventional monetary policy measures. Under these circumstances, interest in central banks' financial risks grew. In the last 20 years, with the disinflationary trend continuing, major central bank