Monday, October 03, 2005


Japans Central Banker Expects No Rate Hikes

The head of Japans central bank had this to say today. "It is suggestive that comments from central bank Governor Toshihiko Fukui had ultimately led the charge for yen bears. Contradicting comments made last week by subsequent officials that forecasted an end to deflationary conditions in the upcoming six months, Fukui confirmed no rush to shift to a tightening policy."

"These recent comments are inline with previous requirements that a minimum of two consecutive monthly pickups in consumer prices would be needed. However, further indications of expansion would also be required in conjunction to viably shift central bank ideology."

The dollar was up against the Japanese currency, rising to 114.20 yen from 113.60 yen.

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