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Boj Interst Rates

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There has been a lot of talk about a possible rate rise in Japan over the last few weeks. The BoJ was due to make a decision today. Does anyone have any news?

I did a google but no luck.

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The BoJ website has the figure 0.10% on it. So I guess they haven't change the interest rate.

Weird really. What would happen here if base rates were that low. We'd all have £2 million pound mortgages.

Anyone know how it works in Japan?

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Weird really. What would happen here if base rates were that low. We'd all have £2 million pound mortgages.

Anyone know how it works in Japan?

Japan is a classic case of low interest rates failing to stimulate the economy. They have been experiencing deflation (prices and wages actually dropping) for most of the last 14 years. Average house prices are now one tenth of what they were at their peak. The mentality goes "why should I buy it today when it will be cheaper tomorrow?" Near zero interest rates have, until recently, failed to overcome that view. The Japanese are (currently) the biggest savers in the world.

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Japan is a classic case of low interest rates failing to stimulate the economy. They have been experiencing deflation (prices and wages actually dropping) for most of the last 14 years. Average house prices are now one tenth of what they were at their peak. The mentality goes "why should I buy it today when it will be cheaper tomorrow?" Near zero interest rates have, until recently, failed to overcome that view. The Japanese are (currently) the biggest savers in the world.

Yup, agree. But it is starting to change by the data coming out at the moment. My guess is that they will be late putting IR's up for fear of snuffing out the recovery. So they could end up chasing rising inflation up along way. Especially if the Japanesse start spending all those savings at the sametime.

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Observer: Bears and bulls,beers and newts

By David Pilling

Published: March 20 2006 02:00 | Last updated: March 20 2006 02:00

It has been a momentous few days in Tokyo. Short-term interest rates, for years pegged at zero, have quite suddenly taken a shocking turn following an unprecedented shift in Bank of Japan policy. In the central bank's words, interest rates will now be kept at "effectively zero" for the foreseeable future. Observer can see what all the hoopla is about.

That misses the point. The really significant change, as any monetary policy wonk will know, is the end of an arcane policy called quantitative easing. Under this regime, the bank has spent five years creating huge amounts of liquidity, which the commercial banks have studiously ignored. Consequently, oodles of cash has piled up in its vaults.

http://news.ft.com/cms/s/f0e579e8-b7b5-11d...00779e2340.html

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  • 302 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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