AUGUST 23, 2007 (LPAC)-- The Bank of Japan did not raise interest rates at their meeting today, despite the fact that the Governor of the Bank of Japan says it should! Governor Fukui said," Distortions and misallocation of resources could occur if interest rates are kept at levels inconsistent with the economy." Fukui also warned that keeping interest rates too low may spur risky investment.

Raising the rate from the current 0.5% would deal another blow to the already collapsing yen carry trade, which has been a major prop to the hyperinflationary policies internationally.