Japan: no rise yet
Article Abstract:
Merrill Lynch argues that expectations of rises in Japanese interest rates in 1997 could be without foundation. Economic recovery appears to be strong, but there are still problems. Growth in bank lending has not occurred and house prices are still dropping. Consumer spending is still subdued and interest rates are not likely to be raised until this changes. Small companies have reported distress in the Shoko Chukin survey and the Tankan survey could also report problems.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Record breaking
Article Abstract:
There has been a bull market in Japanese bonds, while stocks have undergone a bear market. Bond yields have dropped since 1990 with only short interruptions such as during a global rise in bond yields in 1994. A recovery in bank lending would lead to a bear market in bonds, according to Merrill Lynch, which also sees the yen as likely to rise when monetary policyis tightened, and stock prices as likely to rise when there is a sharp rise in unemployment.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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