As many predicted and in violation of every known economic law regarding the proper management of the relationship between inflation and the interest rate, the BOJ raised its fund rate a whole quarter of a percent to 0.5%.
Sadly, the announcement does little to challenge the general consensus that the interest rate differentials between Japan and the rest of the planet are going to remain huge for a long, long time.
Over at his blog, Dr. Brad Setser takes a long look at household-level transnational rate shopping.
And true to his nature, William Pesek of Bloomberg despairs.
Obama To Greet Emperor, But May Not Bow
2 hours ago