Looking at Bloomberg analyst estimates for Japanese interest rates: 14 of 16 analysts expect interest rates to stay the same at 0.1% through the end of 2010. Reports Tuesday showed consumer prices fell a record 2.4%. A strong yen and deflation could be very dangerous for Japan’s economy. The trend since April has been for a strong yen, but I think a reversal is in order – especially considering the change in policy by the administration and a now increased willingness to intervene in the foreign exchange markets.
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