Mish's Global Economic Trend Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mishedlo who wrote (89485)	10/31/2008 2:53:06 AM
From: Proud Deplorable	Read Replies (1) of 116555

Bank of Japan makes rare rate cut....Nikkei loses 500 pts anyway October 2008 Tokyo's benchmark index lost ground despite news of the rate-cut The Bank of Japan has cut its main interest rate from 0.5% to 0.3% - its first reduction for seven years. The move followed a global wave of rate cuts to contain the financial crisis. Japan has the lowest interest rates in the developed world. Tokyo's benchmark Nikkei index briefly inched up on the news, but it ultimately ended the day down 5%. Japan on Thursday announced a five trillion yen ($51bn; £31bn) economic package to boost its flagging economy. Increased sluggishness in Japan's economic activity will likely remain over the next several quarters Bank of Japan A soaring currency and the slowdown in Europe and the US have put Japanese exporters under severe strain in recent weeks. In a vote on whether to lower interest rates, the Japanese central bank's monetary policy board was evenly split, so the final decision was taken by governor Masaaki Shirakawa. Analysts said some investors were unhappy that the Bank had not cut rates further. The Nikkei ended down 453 points at 8,577. Tax cuts and benefits Explaining its decision to cut rates, the Bank of Japan said the impact of the global financial crisis had "further increased in severity". "Increased sluggishness in Japan's economic activity will likely remain over the next several quarters with exports levelling off and the effects of earlier increases in energy and materials prices persisting," it added. Thursday's economic stimulus package, which was unveiled by Prime Minister Taro Aso, was the country's second in as many months. It came after an 11.7 trillion yen package unveiled in August by Mr Aso's predecessor, Yasuo Fukuda. As well as cutting highway tolls and increasing loan guarantees that have been offered to small companies, there will be tax cuts and other benefits for Japan's struggling households. The new package includes an expansion of tax-exempt housing loans to boost the struggling property market, funding for care of children and the elderly, and support for unemployed young people.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next