Adam Cole Months Quotations

Having said that, the leading indicators of GDP are pointing to a very significant slowdown. From here it would appear growth for the final quarter will slow and for the first few months of next year as well.

Even if they don't change at this week's meeting the delay is only one month. It will take three months to withdraw excess liquidity before they can target zero interest rates. So the policy shift might not have a material impact.

This left orders in the fourth quarter up an impressive 4.1% quarter-on-quarter and points to strong capital spending in the early months of 2006, which will likely make the Bank of Japan that much more confident that the time is approaching to start removing its ultra-easy monetary policy.

Interest rates are at their peak, but it's probably going to be some time before we see them coming down, probably another six months or so, ... an unhelpful factor...but is probably at its worst in terms of annual inflation now.