JPY Daily News

Japanese Interest Rate Cut Not Enough to Fix Economic Slowdown

Japanese markets were closed yesterday, decreasing the already fragile liquidity in the currency markets. The JPY traded up against the Dollar, gaining a measly 33 points to close at 98.76.

The Japanese government has employed tools from both its fiscal and monetary policy to fight the financial crisis and global economic slowdown, but many critics have their doubts as to the effectiveness of these programs.

As markets wait for Interest Rate cuts in Europe, England, and Australia; Japan lowered Interest Rates last week in order to jump start the economy. A cut in rates of 0.2% was implemented to stimulate lending, but some view this as symbolic move with little chance for a significant economic impact due to the already low Japanese Interest Rate.

The economic stimulus package that was announced last week may also have a limited effect on the Japanese economy. Japanese consumers are prone to save rather than spend, further limiting GDP growth. These programs may fail to stimulate the economy, sending the JPY lower against the Dollar.

Current Time: 05/27 01:52 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
11/04
	01:30	JPY	Average Cash Earnings	y/y	-0.1%	-0.2%	0.1%
	23:50	JPY	Monetary Base	y/y	0.9%	1.0%	1.4%