Meanwhile, there was a great point made by Marc Chandler of Brown Brothers today. According to his report, he said that “a senior LDP official made an important comment that may prove to be very revealing. He reminded (the BOJ ?) that the CPI index will change in August and the impact of this new measurement should be seen before a change in the BOJ stance. In the past it has been recognized that the Japanese measure may overstate consumer inflation. Past revisions have generally led to lower measured inflation.” If this is the case, it is another reason to add to our laundry list of reasons why the BoJ will not be able to end their zero interest rate quantitative easing policy anytime soon.
Yen Continues Tumble on More Evidence that ZIRP is Here to Stay
Thu Jan 26 21:52:00 GMT 2006