Wednesday, October 12, 2005
'Abnormal' Negative Interest Rates To End: BOJ
The central bank in Japan is planning some changes. "The Bank of Japan governor Toshihiko Fukui reiterated the central bank could end its super-loose monetary policy before the start of FY 2006 (year to March 2007). 'As to when we can discuss the possibility of changing the current policy, I think that the chances will grow stronger towards fiscal 2006,' he told a press briefing."
"Fukui, just last week, said the central bank could not continue 'the abnormal policy forever,' and that quantitative monetary easing could end before the next fiscal year starts in April 2006."
"'What kind of monetary policy we adopt after interest rates return to zero both in nominal and real terms, depends purely on economic and market conditions,' he said."
"The Bank of Japan's decision to keep monetary policy unchanged this month did not hamper speculation that the current 'super loose' policy will change in the coming year. It did however weigh on the yen which slipped to a 17 month low against the dollar."
"Fukui, just last week, said the central bank could not continue 'the abnormal policy forever,' and that quantitative monetary easing could end before the next fiscal year starts in April 2006."
"'What kind of monetary policy we adopt after interest rates return to zero both in nominal and real terms, depends purely on economic and market conditions,' he said."
"The Bank of Japan's decision to keep monetary policy unchanged this month did not hamper speculation that the current 'super loose' policy will change in the coming year. It did however weigh on the yen which slipped to a 17 month low against the dollar."
# posted by Ben Jones @ 9:48 AM 
