Tankan survey paves the way for rise in Japanese interest rates

Today’s strong Tankan survey of business confidence in the second quarter paves the way for the Bank of Japan (BoJ) to raise interest rates, most likely at its next meeting on July 14th. Although most analysis just looks at the headline index of confidence amongst large manufacturers (which rose further to +21 in June from +20 in March) there is a wealth of additional detail in the Tankan that provides support for the BoJ to bring to an end its zero interest rate policy.