Return of a heavyweight

Sustained economic recovery in Japan will probably lead to the end of the country's zero interest rate levels in the third quarter of this year. What impact will this have on risk management and the use of derivatives? And how will it affect the competitive landscape? Christopher Jeffery reports

All eyes seem to be facing east at the moment. While China has arguably hogged most of the limelight, attention is increasingly focusing on the region's largest economy, Japan. The Japanese economy - with a GDP of $4.9 trillion in 2005 - has undergone a radical transformation in the past four years. Indeed, if it maintains its current economic recovery until October, it will surpass its longest sustained period of post-war economic growth. The economy grew a real 1.9% on an annual basis during