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Latest News On The Bank Of Japan And Inevitable I R Hikes

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http://framehosting.dowjonesnews.com/sampl...06160005&Take=1

TOKYO (Dow Jones)--Recent remarks by top Bank of Japan officials on rising interest rates show the bind the central bank is in: while it's not that worried about interest rate levels in Japan now, it needs to sound concerned to prevent rates from climbing even further.
At the same time, officials feel they might need to keep quiet about another matter: their concern that factors may emerge in the long term that could cause Japan's economy to overheat. Traders would likely interpret such warnings as a signal for a monetary policy tightening, leading them to push up interest rates.
On the surface, comments from senior officials would suggest some concern at the central bank about the rise in long-term rates.
"Recent long-term rate moves, as the Bank of Japan governor (Toshihiko Fukui) noted, are a bit volatile," Finance Minister Sadakazu Tanigaki said Friday. "A rapid rise in long-term rates is undesirable for the Japanese economy because it is still in mild deflation."
In the face of government officials' remarks like those, BOJ officials are likely to continue to sound worried about interest rate moves, even if they aren't.

The key to understanding where Japanese rate are going is summed up in the final sentence:

"In the face of government officials' remarks like those, BOJ officials are likely to continue to sound worried about interest rate moves, even if they aren't."

In other words, Japan's interests come first but we want to be seen to be concerned for our debtors.

To be forewarned is to be forearmed, IR are headed up.

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It truely seems that it has been Japan's deflationary cycle that has allowed the world to lower interest rates and assets to inflate. Could this type of news we've been reading from Japan really be the unwinding of this cycle? Is this what Greenspan came to "advise" Brown about? Are oil prices now being set up as a scapegoat?

Many questions, but how nice it would be to see some sense returned to the price of what it costs to put a roof over your head, so that people could actually spend some of their life's time,energy and effort into less material but more worthwhile gains.

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Just as the world banks seem co-ordinated in lowering interest rates around 2001, causing this housing bubble, they now seem just as co-ordinated in raising them.

There's nothing stopping higher rates all over now. The house price crash is on track.

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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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