Tuesday, Dec 19, 2006

Japanese IR remains at 0.25%

inthenews.co.uk: Cautious Japanese hold interest rates

The Bank of Japan has opted to keep interest rates in the country at 0.25 per cent in a widely-anticipated move.

Posted by jellycaster @ 06:08 PM (528 views)
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6 Comments

1. paul said...

They're almost certainly due for a rise early next year though.

Making the cost of lending more expensive.

Tuesday, December 19, 2006 11:17PM Report Comment
 

2. Rjw8652 said...

I certainly hope so! I'm paid in yen and have seen my salary relative to the pound decline from 195 to 233 over the last year, which is a drop of almost 20%. The yen has to be the most undervalued major currency in the world right now - can't you good people start buying some!

Wednesday, December 20, 2006 03:04AM Report Comment
 

3. Nohpc said...

Can't see Japanese rates rising by very much. Wish we had 0.25% interest rates!!

Wednesday, December 20, 2006 05:55AM Report Comment
 

4. harold said...

In years to come Japan's ultra-low IR policy will be seen as the key factor that fu**ed the global economy. Perhaps the Fed pulls the strings in Nippon?

Wednesday, December 20, 2006 10:56AM Report Comment
 

5. sold 2 rent 1 said...

Just read in The Economist:

Expect the Bank of Japan to raise rates in January
http://www.economist.com/daily/news/displaystory.cfm?story_id=8458306

"The BOJ's real effective exchange-rate index shows the yen to be at its weakest since the mid-1980s"

With the pound at a high and yen low, it could be time to switch some cash to yen (not quite there yet through)

Harold,
I think the Fed's rate-setting was just as wreckless than Japan's

Wednesday, December 20, 2006 12:24PM Report Comment
 

6. Nohpc said...

I don't see how you can say that Japan's rate setting has been wreckless!!! Their economy was in the doldrums and they had deflation for years! What would you have them do at a time like that? Increase rates? A country has to look after it's own first. Every country has had ultra low interest rates so how can you possibly blame Japan which on paper definately needed them more than the rest.

The way you lot argue it if every bank managed it's interest rates in the best interest of the global economy then everything would always be fine. This is not the case. The economy will always have boom and bust periods completely independant of rates. Low rates are better for the public who have borrowed large ammounts of money. The BoE's only job is to control inflation... yes, but at the same time controlling inflation may be more harmful than good.

Sorry it just gets my rag that people are saying Japan should not have had these low rates when they were obviously right for their country and they are now raising rates again sensibly as inflation picks up.

On the other hand I think the Fed's rate setting was wreckless and they could have possibly averted their current problems by raising rates sooner as the BoE did to stem the houseprice boom.

Thursday, December 21, 2006 01:14AM Report Comment
 

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