Japan Central Bank Didesak Follow the Fed

TOKYO, WEDNESDAY - The courage Fed cut interest rates to the level of the tribe that nearly approaching zero, 0.25 percent, appears to raise the kind of expectations the Bank of Japan. This didesak the central bank to slash interest rates tribe more than twice as big by government efforts to bolster the economy hoop sunrise this country.

The owners of capital to see this opportunity as much as 52 percent that the central bank will cut overnight call rate from 0.3 percent in their meeting this week. Scheduled meeting the central bank intended finished on Friday (19/12).

Meanwhile, Governor of the Bank of Japan governor Masaaki Shirakawa has been suggests that the government is still reluctant to slash interest rates again after acuannya morning for the first time during the seven years in October. Still, according to Shirakawa, he received pressure after Finance Minister Soichi Nakagawa ask the central bank to calculate more carefully to prevent a recession in the yen and maintain the conservative interest rate of erosion by the Fed.

"The combination of a weak domestic economy, Send yen on the U.S. dollar, and political pressure on the BoJ, the central bank will be forced to move more quickly to calm the market," said said John Richards, Head of Debt Markets Strategy at RBS Tokyo. Richards predicted, interest rate BoJ will move in December or January.

"The central bank is likely that the tribe will not cut interest rates to be 0.10 percent on Friday this," said Tomoko Fujii, Head of Economics and Strategy of Bank of America Corp. in Tokyo.

JPMorgan, Mitsubishi UFJ Securities Co., and Capital Economics Ltd. also has a similar prediction for the BoJ trimming interest rates as soon as possible after clearing the Fed.

"BoJ know that they need to reduce interest rates this immediately so that no economy to worsen," said Teizo Taya, advisor Daiwa Institute of Research, which also had members sitting in the chair the central bank. He added, "Investors think, later, now or later the central bank must immediately move even though they do not cut interest rates this week the tribe. The pressure also led to the government there (decrease interest rates)." (Kompas)