FXstreet.com

This report has been deactivated

10

0

Japan : BoJ preview − Been there, done that!

Thu, Dec 18 2008, 09:11 GMT
by Flemming J. Nielsen

Danske Bank A/S


We now expect the Bank of Japan (BoJ) to cut its leading O/N target rate by 20bp to 0.1% on Friday when the BoJ announces its interest rate decision following this week's monetary policy meeting. While a smaller 10-15bp interest rate cut cannot be ruled out, the message will be the same: the O/N target rate will be allowed to decline close to zero and will no longer be the main monetary instrument. Hence, focus will now shift towards new BoJ measures to improve the monetary policy transmission mechanism. Options include outright purchases by the BoJ of government bonds, commercial papers or even stocks.

Danske Bank  | Holmens Kanal 2-12, DK-1092 Copenhagen
http://www.danskebank.com/ | danskeresearch@danskebank.com

Legal disclaimer and risk disclosure

This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.

Related reports

Market Session Recaps - New York Session by FOREX.com
Mon, Nov 23 2009, 22:12 GMT

U.S. Forex Market Commentary by GCI
Mon, Nov 23 2009, 22:10 GMT

Fundamental Currencies Comments - Stocks, commodities gain; Dollar declines by ecPulse.com
Mon, Nov 23 2009, 19:02 GMT

Daily Market Report - Greenback is starting the new week on a soft note by Wells Fargo Investments, LLC
Mon, Nov 23 2009, 14:59 GMT

Forex Technical Report - Gold Surges as Dollar is Unable to Follow-Through to Upside by ForexHound.com
Mon, Nov 23 2009, 14:45 GMT

japan, boj, eurjpy, interestrate, gbpjpy, usdjpy

View All

Related content


Interested in forex trading? forex brokerage firms!


MG Financial Group
Contact the broker/FDM
Open a demo account
FX Solutions LLC
Contact the broker/FDM
Open a demo account
GFT
Contact the broker/FDM
Open a demo account
Deutsche Bank
Contact the broker/FDM
Open a demo account
FXDD
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.