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Zero Interest Policy: Terminated in July?

4, 04. 2006

The Bank of Japan’s zero-interest-rate policy will be lifted sooner than originally expected, economists say. The views in the financial market came after the central bank on Apr. 3 announced its quarterly Tankan March 2006 survey. Tankan is a quarterly poll of business conditions and regarded as one of the key financial measures of Japan.

Asahi Shimbun asked 10 economists when the monetary policy will be lifted in its Apr. 4 edition. Five predicted the policy will be terminated in July or August. Kyodo News Agency also said on Apr. 3 that the end of the political measure comes around the same season July, quoting the comment of Morgan Stanley’s economist Takehiro Sato.

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