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Tuesday, 26th January 2010
In Business In Japan,

Bank of Japan keeps interest rates steady

The Bank of Japan has kept interest rates in the country at the same rate in its latest announcement.

This sees the interest rate at just above zero - 0.1 per cent - and was a move predicted by many market analysts. The bank announced the decision at the end of a two-day meeting today (January 26th).

Japan has recently emerged from its deepest recession since the end of the second world war and is also struggling with deflation levels.

"We have yet to exit deflation, but with efforts by the BOJ, I think and I hope we will see signs of being out [of deflation] within two to three years," said Japan's finance minister Naoto Kan in a parliamentary budgetary committee session covered by news provider Dow Jones.

Japan has suffered badly in the worldwide economic downturn, with anaemic demand for some of its largest exports - such as cars, electrical items and gaming products - having an impact on trade.

Written by Kimberley Homer.

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