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.
Quotes about ultra-easy (4 Quotes)
The plus reading will definitely pave the way for an end to the Bank of Japan's ultra-easy monetary policy and the market has not factored this in yet,
I think even after the Bank of Japan ends its ultra-easy policy, it would keep short-term interest rates at zero for a while. But the market is now concerned about how banks will change their lending stance.
If the core CPI is above market consensus forecast of a rise of 0.4 percent year-on-year, this would fuel speculation that the Bank of Japan will end its ultra-easy monetary policy at its meeting next week, which could spark a spate of yen-buying.