Rate doubts hit the yen
Article Abstract:
Japanese economic recovery is slow which means that interest rates may not be raised until 1997, in turn depressing the value of the Japanese yen. Japanese investors are investing in foreign assets due to low returns available in Japan. Low interest rates help Japanese banks. There is disagreement as to how long low interest rates will continue and how rapidly Japanese banks can recover. A rise in the US trade deficit may also lessen support for a strong US dollar in relation to the Japanese yen.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Japan: glimmers of optimism
Article Abstract:
Japanese share prices have risen in Jul 1995 following an announcement that the Bank of Japan would permit call rates to drop below the official discount rate. Call rates apply to lending between commercial banks. The bank sees Japanese economic recovery as hampered by falls in prices. US interest rates have also been lowered and the Bank of Japan would not want the gap between interest rates in the two countries to narrow since this would tend to push up the value of the Japanese yen.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Japan: interest rate rise
Article Abstract:
Merrill Lynch sees subdued inflation and strong real activity for the Japanese economy. A rise in interest rates is possible for summer 1996, as domestic demand strengthens. Indicators such as industrial production and the relationship between applicants and jobs will be used by the Bank of Japan. The money markets have already taken this rise into account, so market dislocation is unlikely to result from raising interest rates.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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