business

BOJ chief says no rate hike for long time

10 Comments
By Toshifumi Kitamura

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© 2018 AFP

©2018 GPlusMedia Inc.

10 Comments
Login to comment

Absolutely right Ozziedesigner.

-1 ( +0 / -1 )

@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.

0 ( +1 / -1 )

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.

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.

0 ( +0 / -0 )

"...servicing Japan's phenomenal debt accounts for over 20% of Japanese government spending."

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."

0 ( +0 / -0 )

servicing Japan's phenomenal debt accounts for over 20% of Japanese government spending.

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.

1 ( +2 / -1 )

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.

-2 ( +0 / -2 )

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

1 ( +1 / -0 )

Good job Kuroda Sensei. The best Central Banker in the world.

-1 ( +0 / -1 )

Oh so that's how the free market works. By manipulation of interest rates

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.

1 ( +1 / -0 )

Oh so that's how the free market works. By manipulation of interest rates. Ah wakata !

-2 ( +0 / -2 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites