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Grace Cheng

IMF supports gradual rise in Japan interest rates

By Grace Cheng on September 16, 2006 | More Posts By Grace Cheng | Author's Website

A gradual rise in Japanese
interest rates to prevent the economy slipping back into
deflation is appropriate, a senior International Monetary Fund
official said today. Because the Japanese economy still …

seems to be precariously perching at the edge of deflation, I think yen
would continue to be favoured by traders to fund carry trades, that is,
the probability of yen being weaker is quite high on a long-term basis (unless tone regarding yen is changed in G7 meeting).

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