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Investors On Monetary Policy Watch - Japan!

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Preview: Investors on monetary policy watch

By Chris Flood

Published: March 6 2006 08:01 | Last updated: March 6 2006 08:01

The Bank of England is expected to keep interest rates at 4.5 per cent on Thursday but a number of other monetary policy meetings this week could have an important bearing on global financial markets.

On Thursday, the Bank of Japan could signal an end to its policy of quantitative easing, potentially a key shift in global liquidity conditions. But some analysts expect the BoJ will hold off until next month before changing course so as not to disrupt money markets before the financial year ends on March 31.

Japan’s policy shift is expected to have wide-ranging effects. After benefiting from strong inflows from Japan over the past five years, Australia and New Zealand’s currencies have weakened sharply against the yen in the past three months. Australia and New Zealand are expected to keep interest rates unchanged at 5.5 per cent and 7.25 per cent respectively but there is an increased likelihood of greater volatility for both currencies, depending not only on domestic monetary conditions but also on rate developments in Japan.

http://news.ft.com/cms/s/b58203d2-ace6-11d...00779e2340.html

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Is there a shift in Japan's policy going on?

http://yahoo.reuters.com/news/articlehybri..._T115847&rpc=44

TOKYO, March 6 (Reuters) - The Bank of Japan faced mounting political pressure on Monday to refrain from imminently ending its ultra-easy policy as Prime Minister Junichiro Koizumi urged caution so as not to spoil a hard-won economic recovery.

The markets know the effects of Japan's IR policy will not be mild.

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The Bank of Japan faced mounting political pressure on Monday to refrain from imminently ending its ultra-easy policy as Prime Minister Junichiro Koizumi urged caution so as not to spoil a hard-won economic recovery.[/indent]

Of course there will be resistance, but if key economic indicators are good then they will proceed. The recent data coming out of Japan is good and the only question that now remain is whether it will be this month or next.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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