Bank of Japan’s Interest Rate Cut Proves Successful
Posted on 24. Nov, 2008 by admin in JPY Economic News, Japanese Yen, Japanese Yen Currency
The past week has proven successful for the Bank of Japan’s (BoJ) recent decision to cut Interest Rates to 0.30%. The JPY’s intensive bullish trend was halted and the JPY is currently trading at the 95.00 level against the USD and at the 120.00 level against the EUR.
The Japanese economic outlook seemed quite disturbing last week. The Preliminary Gross Domestic Product (GDP) dropped for the second month in a raw, confirming that Japanese consumers are being more careful with their spending these days. The Japanese Tertiary Industry Activity dropped for the second month in a row as well; pointing out that the Japanese economy has entered a phase of contraction.
This week’s leading data will be the Preliminary Industrial Production for October, which is expected to decrease by 2.5%, and the Retails Sales survey which is expected to decrease by 0.9%. These figures will act as another proof that the Japanese economy is contracting further and that the JPY might enter a bearish trend against the major currencies in the coming weeks.
