Japan raises rates for first time in 6 years

Japan's central bank raised interest rates for the first time in six years, lifting its key rate to 0.25 percent from zero and affirming the end of a long era of deflation and economic stagnation.

The Bank of Japan joined central banks in the United States and Europe that have already embarked on a credit-tightening cycle, although Japanese interest rates remain minuscule and are likely to stay low for a long time yet.

- At only 0.25%, the yen carry trade isn't quite dead yet. But might this signal the beginning of the end of the ongoing party? (ie. 1. borrow yen cheap 2. buy just about anything else 3. pocket the difference).

(2006-07-21 17:38:42 SGT) [Biz] Permalink

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