One of the factors keeping borrowing rates higher than they might be is the financial market’s concern about the future costs to the Government of recapitalising the banking system. This cost will become clearer over the coming weeks, as the NAMA purchases clear the way for capital-raising exercises by the banks.
Under such circumstances, there is some speculation, especially  7  overseas, that Japan's monetary policy might also shift to a tightening in the near future, or might at least make a slight adjustment toward an exit from monetary easing. However, the inflation environment in Japan differs substantially from that in the United States and major countries in Europe.