Japan's next central banker promises "whatever it takes" to fight deflation

Kuroda pulls a Draghi.

Japan is where all the action in monetary policy is taking place, and the news this weekend is no exception. Haruhiko Kuroda, the man who is likely to become the new governor of the Bank of Japan following his nomination by prime minister Shinzo Abe, has apparently been taking lessons from Mario Draghi.

Bloomberg's Michael McDonough tells the story:

 

 

 

 

 

 

 

 

The crucial phrase there is "whatever it takes". That's the phrase which has gone down in history as the turning point in the euro crisis. Last July, Mario Draghi promised to do "whatever it takes" to preserve the euro — and from that moment, Italian bond yields fell almost consistently until mid-February when traders realised how shambolic the election was gearing up to be. This chart from Business Insider shows just how strong the effect was:

 

Kuroda will be hoping he can have half the effect of Draghi. But since the effectiveness of promising to do whatever it takes is dependent on everyone believing that you actually will, Japan has an advantage in this game. The lengths the government has gone to to tackle deflation already far exceed anything any other country has attempted, and it would appear they are only getting started.

Haruhiko Kuroda. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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FTSE 100 plunges after Theresa May signals hard Brexit ahead

The Prime Minister is to lay out her Brexit plan later today. 

The FTSE 100 and the FTSE 250 plummeted this morning after the Prime Minister signalled Brexit will mean leaving the single market.

Theresa May is expected to rule out "partial membership" or any other kind of "half-in, half-out" deal with the EU in a speech later today.

The FTSE 100, the index of the UK's 100 biggest companies, and the FTSE 250 both fell more than 0.3 per cent immediately after opening. 

The worst performers included the housebuilder Barratt Developments, consumer goods tester Intertek and the mining company BHP.

Stock markets have been buoyant since Brexit, in part because many of Britain's biggest companies are international and benefit from a devalued pound. 

However, while markets fell, the pound crept up against the dollar, to $1.21. 

Critics of the Prime Minister say she is sacrificing the economy to prioritise immigration controls.

TUC general secretary Frances O'Grady warned: "If we leave the single market, working people will end up paying the price. It'd be bad for jobs, for work rights & for our living standards."

According to the Office for National Statistics, inflation rose from 1.2 per cent in November to 1.6 per cent in December. 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.