Enzio von Pfeil

BoJ Rate Hike Was Expected, Same Day Effect Limited Given Global Situation (EWJ)

It seems as if our view re. "tribal" policy0-making has prevailed: rates will stay at this level for a long time, according to Steven's quotation above. The reason is simple: with debt/GDP standing at 150% and with debt servicing costs gobbling up 22% of all budget outlays at this low level of rate, there is no way that rates can be hiked.

Our concerns with Japan, however, lie elsewhere.