CCdaCE
Full time employment: Posting here.
- Joined
- Apr 3, 2006
- Messages
- 897
Maybe this belongs in Other Topics, but it's a money-making question, so bear with me.
Ok... what am I missing? This question is mostly out of ignorance. I've read how Japan's "banking system is hosed up" - pardon my technical jargon.
Unheralded Rate Hike Irks Japan - Businessweek.com
So, their short term rate "Fed funds" type of rate is 0.5% AFTER they raised it (and ticked apparently everyone off, in the process).
Does that mean, then, their loan rates are rock bottom? What's stopping someone from loaning money in Japan and parking it in US CDs/MMFs, etc. ?
Pardon my ignorance. I can't wrap my mind around this and figured someone here would have a fantastic explanation.
-CC
Ok... what am I missing? This question is mostly out of ignorance. I've read how Japan's "banking system is hosed up" - pardon my technical jargon.
Two months, two surprises. That's how many central bank watchers interpreted the Feb. 21 announcement by the Bank of Japan's policy board that it would raise its benchmark short-term interest rate target. The hike was the first since July when the BOJ lifted rates from 0.25% to 0.5%—their highest level in a decade, and it came in counterpoint to the BOJ's decision last month to hold rates steady.
Unheralded Rate Hike Irks Japan - Businessweek.com
So, their short term rate "Fed funds" type of rate is 0.5% AFTER they raised it (and ticked apparently everyone off, in the process).
Japan is still in the midst of its longest expansion since World War II. The economy is on track to grow more than 2% in the fiscal year ending this March, thanks in part to rates that are still the lowest among industrialized nations. (Compare that with the U.S.'s key rate, at 5.25%, and the euro zone's, at 3.5%.)
Does that mean, then, their loan rates are rock bottom? What's stopping someone from loaning money in Japan and parking it in US CDs/MMFs, etc. ?
Pardon my ignorance. I can't wrap my mind around this and figured someone here would have a fantastic explanation.
-CC