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© 2018 AFPBOJ chief says no rate hike for long time
By Toshifumi Kitamura TOKYO©2024 GPlusMedia Inc.
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© 2018 AFP
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ozziedesigner
Oh so that's how the free market works. By manipulation of interest rates. Ah wakata !
JeffLee
Central banks are in charge of setting (or more accurately targeting) short term interest rates. That's their job and that's how economies everywhere work.
As for Japan, rates dont need to come up, so they shouldn't come up.
Ganbare Japan!
Good job Kuroda Sensei. The best Central Banker in the world.
wtfjapan
As for Japan, rates dont need to come up, so they shouldn't come up.
exactly Japan doesnt have an inflation problem actually the opposite, American can keep rising rates to cool off inflation and the $ can go with it. happy days
cucashopboy
As far as I can see, interest rates cannot go up without bankrupting the government. Even with current ultralow interest rates, servicing Japan's phenomenal debt accounts for over 20% of Japanese government spending.
Ganbare Japan!
Japan's "phenomenal debt" is not an issue at all. Almost all debt is to Japanese creditors, so Japanese government simply needs to order the central bank to print money to pay the debts off. Tgry can pay it back whenever they choose, simply by printing cash. Basically, there is no problem even when debt gets to 500% of GDP.
JeffLee
Most of that money (the coupon payments on JGBs) ends up in the coffers of the Finance Ministry. This is the nature of Japan's fiscal "debt."
Scrote
Isn't the central bank supposed to be independent of the government? If the central bank did as you suggest we would have hyper-inflation, just like Venezuela. You can visit the Bank of Japan museum to see that this has been tried in Japan multiple times in the past, with the currency becoming completely worthless each time.
ozziedesigner
@Jefflee = So called government Central banks are owned & run by private banks. So who do you think they are designed to benefit ? There is no free market. It's a scam as is Fractional reserve money printing...i mean banking. I could go on and on. Have a bit of a study on it. It took me a while to wake up to it.
Concerned Citizen
Absolutely right Ozziedesigner.