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Analysts Comments

Masamichi Adachi, senior economist at JP Morgan Securities

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24 July 2008 @ 08:14 am EST
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Thomson Financial News - "The recent stability in crude oil prices, as well as of other commodity products, together with receding wariness about the U.S. financial system, mean that a recession in Japan will be mild. So, we believe that chances of a rate cut are somewhere around 20 percent or so. While things are worsening just as we had envisaged, the Japanese economy has not lost an underlying force that will allow it to resume a gradual recovery eventually. And if my view turns out to be correct, the BoJ will eventually move to hike interest rates."

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