Press comment: Japan remains at mercy of global trade war as interest rates held


Following the news that the Bank of Japan held interest rates and upped its economic growth forecasts, please find below a comment from Hinesh Patel, portfolio manager at Quilter Investors:

“As one of the most aggressively loose central banks in the world, there is, unsurprisingly, little room for the Bank of Japan to move further with interest rates.

“The bank expected to see the Q4 domestic weakness that came following a tax-hike to fade, however this has clearly failed to materialise yet. With US-China relations entering somewhat of a détente and a stabilisation in forward-looking global indicators central bank policy makers can remain in wait and see mode. This is especially the case in Japan where the government’s fiscal policy remains loose.

“Furthermore the Olympics should provide a lift and the yen has weakened on a trade-weighted basis since autumn last year.

“Ultimately, Japan’s monetary policy remains at the mercy of global trade resolution and without oversimplifying the situation, the response of the Federal Reserve.”

 

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £109.8 billion in customer investments (as at 30 September 2019, excluding Heritage life assurance).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Old Mutual International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

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