Bank of Japan
ORG
Bank of Japan
The focus of attention has been the Bank of Japan's governing policy board, whose nine members began a two-day meeting in Tokyo on Wednesday. According to Bank of Japan, Japanese investors bought foreign securities worth about 9.9 trillion yen in the three months that ended in Sept. 30, three times as much as a year earlier. Economists say this could lead to a situation, far-fetched but not entirely implausible, in which the Bank of Japan deflates the American real estate market, as homebuyers face more expensive mortgages. The Bank of Japan feared that maintaining easy money for too long could cause the reviving economy to overheat, possibly creating inflation or a stock market bubble. According to Bank of Japan, Japanese investors bought foreign securities which is worth about more or less  9.9 trillion yen in three months that ended in September 30, three times as much as a previous year. Economists say this could lead to a situation far-fetched but not entirely implausible in which the Bank of Japan deflates the American real estate market, as homebuyers face more expensive mortgages. The bank's decision could also have huge consequences for Japan's own $4.6 trillion economy, which is finally growing again.