InsideJapan News Network

The Japanese central bank has kept the key interest rate at the same level, it has announced today.

In a vote, the bank's policy board decided unanimously to keep the rate at the current level of 0.1 per cent and also decided not to press forward with any new quantative easing measures in the wake of the economic downturn.

The bank's key interest rate has been at 0.1 per cent since December 2008.

Key figures from the bank met for a two-day long conference to discuss the economy, credit measures, stimulus and the state of both domestic and overseas markets.

In a statement at the end of the meeting, it said: "It is a critical challenge for Japan's economy to overcome deflation and return to a sustainable growth path with price stability."

Japan suffered its worst recession since the end of the second world war, with global demand for many of its key exports hit hard.

Written by Kimberley Homer.