Report comment

I understand what you're saying but given your research and what I'm seeing too, I would imagine they want the yield curve as steep as possible for as long as possible to re capitalize their FUBAR'd banking system for as long as possible before the inevitable hits those banks will take on their sovereign books.

Maybe there is some benefit to raising rates before the market forces them too but I just don't see it outside of an ego/control issue. In reality we both know they have very little true long term control of this situation.

if rates are going up anyway why not try to push that out? the NIM is one of the only thing keeping their banking system liquid. if it flattens then money velocity will drop very quickly.