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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (65201)	7/4/2006 11:41:33 AM
From: UncleBigs	Read Replies (1) \| Respond to of 110194

A quote recently by Japan politician: “Monetary policy is up to the BoJ, but the bank needs to continue working as one with the government to insure that the economy will not go back into deflation," said LDP Chief Cabinet Secretary Shinzo Abe on July 3rd. "The BOJ needs to continue zero interest rates for the time being to support the economy,” and to keep the yen weak. The world's major central banks want a weak currency and higher asset prices. Their only interest in controlling inflation is to cook up their government statistics and claim inflation expectations are well contained. Will $100 oil get their attention? I thought $70 oil would do it.

To: russwinter who wrote (65201)	7/7/2006 12:39:38 PM
From: booyaka	Read Replies (2) \| Respond to of 110194

Update on euroyen futures market: the Tankan survey makes it hard for the Bank of Japan any longer to put off the decision to start “normalising” rates—particularly since the stockmarket has now recovered its poise after worrying falls in May and early June. On the survey's publication, the market for euroyen futures instantly priced in the probability of a quarter-point rise at the end of the BoJ's policy-board meeting on July 13th and 14th, along with a further rise of the same magnitude later in the year. Yet with today's rate of core inflation, even a cumulative half-point rise in interest rates would not represent “normalisation”, for real interest rates would remain below zero—after inflation, you would still be paid to borrow. The prices of euroyen futures indicate a further half-point rise in interest rates next year. Message 22603270 Looks like the consensus now strongly favors a BOJ rate hike next week.