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To: russwinter who wrote (65562)	7/7/2006 8:24:50 PM
From: CalculatedRisk	Respond to of 110194

Dr Duy's Fed Watch: Still in the Game economistsview.typepad.com "The jobs report was mixed, but tilted enough to the “strong” side to keep the more hawkish FOMC members fidgeting nervously. Yes, the headline reading of 121,000 net new hires in May argues for a pause at the next meeting. But the rest of the report argues for another 25bp. And, given last month’s wave of hawkish rhetoric, caution suggests following the latter bet."

To: russwinter who wrote (65562)	7/9/2006 12:03:31 AM
From: booyaka	Respond to of 110194

Latest word from BOJ sources (via Mainichi Shimbun): Brighter economic outlook to cause BOJ to discontinue zero-interest policy Friday The Bank of Japan (BOJ) is set to discontinue its 5-year-old zero-interest policy as Japan's economy appears to be on a track of self-sustaining growth, BOJ sources said. At a meeting of the central bank's Policy Board to be held on Thursday and Friday, BOJ Gov. Toshihiko Fukui will propose to raise its key interest rates. A majority of the members of the board are expected to vote for the proposal. The government and policymakers from the ruling coalition are also likely to support the decision. The BOJ will raise its target for leading the short-term interest rate to 0.25 percent from zero, and hike the official discount rate from the current 0.1 percent to somewhere between 0.35 and 0.5 percent, according to the sources. In the tankan report on companies' business sentiment released last Monday, the BOJ confirmed that Japan's economy is steadily growing. Moreover, concerns over inflation in the United States have diminished. The top official of the central bank thus deemed that are few factors that could adversely affect Japan's economy. Even after lifting its zero interest policy, the BOJ intends to adjust its key lending rates at moderate paces to maintain its easy-money policy and help ensure Japan overcomes the ongoing deflation, central bank sources said. However, the sources also said BOJ Policy Board members will remain cautious about its policy about the interest rates until its meeting, as the recent North Korean missile tests could destabilize the market situation. (Mainichi) mdn.mainichi-msn.co.jp