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Realistbear

Japanese Commercial Bank I R Surge Following Bo J Move

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http://www.tradingmarkets.com/.site/news/A...MARKETS/308224/

Interest Rates Breaches Japanese Central Bank Target Level

Tuesday, July 18, 2006; Posted: 06:14 AM

(RTTNews) - Tuesday, the first trading day since the Japanese Central Bank ended its zero interest rate policy last Friday saw interest rates on unsecured overnight call loans breach the central bank's target of 0.25%. According to Nikkei News, some transactions even closed above 0.4%, the same rate as on the BOJ's Lombard-style overnight loans to private-sector financial institutions. The Central Bank in an attempt to arrest the surge in short-term interest rates pumped a total of one trillion yen into the money market in the morning and afternoon.
Meanwhile large banks have sharply jacked up their lending rates in response to BOJ's decision to end zero rate policy and the rise in the target overnight call to 0.25%.

Far reaching effects:

http://www.seeurope.net/en/Story.php?StoryID=61831

The Bank of Albania (BoA) has raised the interest rate on its main repurchasing agreement (REPO) from 5.00% to 5.25%. The move marks the first change in the base lending rate since March 2005, when it was reduced from 5.25% to 5.00% amid a very benign inflation situation.
Although Albanian inflation remains low in 2006 so far, the BoA has become concerned about
excess liquidity
in the banking system.

As liquidity is being removed around the Globe beginning in Japan IR will follow higher. Tick tock tick tock..... :)

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I am sure this is great news but........

can you please explain in laymans terms what the 0.4% bit is about please

Its a simple "mark-up." The profit the banks are making on passing the money on. We should see the more visible effects of the Japanese rate hikes in the UK very soon--but not .25% as a number of banks will want their "mark-up" along the way.

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Guest Cletus VanDamme

Its a simple "mark-up." The profit the banks are making on passing the money on. We should see the more visible effects of the Japanese rate hikes in the UK very soon--but not .25% as a number of banks will want their "mark-up" along the way.

Looks like it's the fixed rate for me then. Gotta decide by mid August! (currently on a 2-year tracker). Could go to another tracker at BOE - 0.13% or fixed rate at 5.18%

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  • 335 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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