Yen Weak, Triumphant

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.