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Bo J Has No Idea What C P I Is As They Throw Out Vcrs

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http://www.businessweek.com/globalbiz/cont...mics+%2B+policy

AUGUST 22, 2006

Asia

By Kenji Hall

Japan: The BoJ Plays It Close to the Vest
Japan's central bank won't say which economic indicators now guide its actions on interest rates; the lack of transparency worries investors
Have you bought a VCR or a standalone word processor lately? Neither have many Japanese. Yet those items are in the "basket" of around 600 products Japan uses to measure inflation—which has led to many complaints that the government doesn't have a very good handle on this key economic statistic. On Aug. 25, that's scheduled to change as the statistics bureau plans to make its first revisions to the consumer price index in five years..../
"Nobody knows what the BoJ considers as its most important economic indicator now," laments Masaaki Kanno, an economist at JP Morgan Securities Japan...../
That could be a big problem for the global economy.
In March, the BoJ ended its five-year easy-money policy and adopted an informal inflation target of 0% to 2%; if price shifts stay in that range, the bank won't touch interest rates. If they're lower or higher, the BoJ will cut or boost rates. But if the BoJ won't say how it's measuring the economy, economists and investors will have a harder time predicting its next move.

Just when some thought the YCT had gone away....................... :o

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http://www.businessweek.com/globalbiz/cont...mics+%2B+policy

AUGUST 22, 2006

Asia

By Kenji Hall

Japan: The BoJ Plays It Close to the Vest
Japan's central bank won't say which economic indicators now guide its actions on interest rates; the lack of transparency worries investors
Have you bought a VCR or a standalone word processor lately? Neither have many Japanese. Yet those items are in the "basket" of around 600 products Japan uses to measure inflation—which has led to many complaints that the government doesn't have a very good handle on this key economic statistic. On Aug. 25, that's scheduled to change as the statistics bureau plans to make its first revisions to the consumer price index in five years..../
"Nobody knows what the BoJ considers as its most important economic indicator now," laments Masaaki Kanno, an economist at JP Morgan Securities Japan...../
That could be a big problem for the global economy.
In March, the BoJ ended its five-year easy-money policy and adopted an informal inflation target of 0% to 2%; if price shifts stay in that range, the bank won't touch interest rates. If they're lower or higher, the BoJ will cut or boost rates. But if the BoJ won't say how it's measuring the economy, economists and investors will have a harder time predicting its next move.

Just when some thought the YCT had gone away....................... :o

So what your saying is that we might end up with some dodgy Betamax VCR and some green-screen wordpro in Gordon's basket of goods?

Edited by Xurbia

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You kind of missed the most important bit, they have stopped targetting inflation/deflation and are not telling anyone what their basing thier monetary policy on. It could be a coin toss for all we know.

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The YST is diffential driven so unless the gap is closed between our interest rates and theirs it will never "go away". Big money knows this. In the last week before the hike the BoJ lent its largest sums ever. They knew the US were going to hike further. The same goes for the UK. The YCT looks to grow further without international intervention. So far the World owes Japan more than ANY other country. :ph34r::ph34r::ph34r:

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http://www.thenassauguardian.com/bixex/360275715333391.php

Japan's consumer prices probably rose for a ninth month in July, adding to evidence that the central bank may raise interest rates a second time this year. Core consumer prices, which exclude fresh food, climbed 0.5 percent from a year earlier, according to the median forecast of 29 economists surveyed by Bloomberg News.

Another hike from Japan and credit will tighten another notch. :o

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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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