Friday May 8, 2009 - 13:33:42 GMT
Share This Story
global-view.com - www.global-view.com
FX Blog- GVI Forex Month Ahead Interest Rate Outlook for May 11, 2009
Central Bank Policy Outlook -- Key Interest Rates
Global Interest Rates
The Global-View.com Monetary Policy Outlook is prepared weekly by the trading professionals at GVI Forex. For information on the GVI Forex Service Click Here
11 May 2009
Upcoming Central Bank Meetings -- Monetary Profiles BOJ target rate (0.10%) already virtually at zero. No rate cut is possible.
Japan invented Quantitative Easing.
Bank of Japan- Thursday May 22, 2009
GVI BOJ Policy Meeting Preview
- Decision: May 22, 2009
- Current Overnight Target Rate: 0.10%
- Expected decision: unch
- Japanese interest rates virtually hit their theoretical 0% floor (0.10%). The central bank surprised many on December 22 by taking a page from the Fed's playbook and throwing everything but the kitchen sink at its weakening economy and an overvalued currency.
BANK OF JAPAN Policy Objective: The Bank of Japan Law states that the Bank's monetary policy should be "aimed at, through the pursuit of price stability, contributing to the sound development of the national economy."
The chart above shows year/year core nationwide CPI and the reported BOJ goal of between 0% and 2% for this price index.
The chart above shows the current three month libor rate, the current BOJ overnight rate target and where the futures markets are currently trading three month rates for the specified periods in the future. The chart also includes comparisons of where these futures rates were trading most recently, a week ago and four weeks ago. The chart provides a view on where the markets feel Japanese interest rates are headed.
The chart above shows the Japanese overnight rate target, three month libor, and two- and ten-year bond yields over the past twelve months.
John M. Bland is an author and co-founder and partner of Global-View.com. Prior to Global-View.com, he was a Vice-President and senior dealer in a forex inter-bank and futures trading arm of a subsidiary (ContiCurrency) of the Continental Grain Company in NYC. Previous to that, he was one of the early members of the Chemical Bank corporate advisory service in NYC, and also worked in international liability management for that bank. John holds an MBA from the Hass School at the University of California at Berkeley and a bachelors degree in International Economics from Berkeley.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."