Japan keeps interest rates on hold at 0.1pc
Japan’s central bank has kept its benchmark interest rate unchanged as it tries to nurture the country’s slow recovery from recession while also attempting to tackle deflation- rates have been held at 0.1% since the end of 2008.
Besides falling prices, the strong yen – which eats into the value of overseas earnings for Japanese exporters – is also hitting the economy.
But the Bank of Japan said there were signs of recovery. Exports and production in the world’s third largest economy were increasing, it added.
Earlier this month, Japan’s prime minister suggested that the country’s economy might need additional stimulus spending.
Naoto Kan said that while the economy was still growing, there was concern about the level of unemployment and the health of the global economy.
August 16, 2010
Tags: Bank of Japan, Interest Rates, recession Posted in: Uncategorized
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