Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| February 19, 2007 | | Economic data says yes, but the government may say no | The question this week is whether the Bank of Japan will raise interest rates when it makes a decision on Wednesday. Spread betting and contracts for differences should consider that then government may put pressure on the BOJ, despite the encouraging economic data. The Scotsman reports:
In Japan, in contrast, above-forecast economic growth numbers have
boosted expectations for a Bank of Japan rate hike to 0.5 percent this
Wednesday, although this was not enough to spark a lasting rally in the
yen.
Adding to yen weakness was some speculation that the BOJ could come under political pressure not to raise rates. | | |
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