Friday, 19th December 2008
In Business In Japan,
BOJ cuts interest rates to 0.1%
The Bank of Japan (BOJ) has cut interest rates from 0.3 per cent to 0.1 per cent today (December 19th) in an attempt to stimulate the country's financial system.
Japan, which is the second largest economy in the world, officially succumbed to the recessionary tidal wave in November.
The country's government has forecast that while the economy will not grow during the next financial year, which begins on April 1st, new stimulus measures could stop it from contracting.
Finance minister Shoichi Nakagawa commented: "Looking at employment and companies' financial conditions, in a broad sense the economy is in a very severe state."
Following the announcement, the yen fell against the dollar, while the Nikkei lost 0.9 per cent.
Recently, the US Federal Reserve reduced interest rates to between zero and 0.25 per cent.
The move saw interest rates in the US fall below those in Japan for the first time since 1993, reports the Times.
Related news stories:
Prime Minister Abe calls BOJ 2% inflation target 'epoch making' (22nd January 2013)
BOJ 'could enjoy more independence' under the Democrats (25th August 2009)