Interest Rate Roundup

Thursday, January 18, 2007

BOJ takes a pass

Looks like the Bank of Japan couldn't stand up to all the political pressure after all. It stood pat on interest rates rather than raise them 25 basis points to 0.5%. The Japanese yen is plunging on the news to fresh four-year lows against the dollar. If there's any consolation for those looking for a hike, traders are now expecting an increase to come at the BOJ's February 21 meeting. One reason: The decision to stand pat was not unanimous. Of nine voters, three wanted a hike at this meeting.


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