Wednesday, 26th January 2011
In General Japan News,
Bank of Japan maintains monetary policy
The Bank of Japan has opted to keep its monetary policy unchanged as it believes the country's economy is improving.
According to the central bank's governor Masaaki Shirakawa, there are signs that deflationary pressures on growth are easing.
"It is likely that Japan's economy will overcome the deceleration in the pace of improvement and return to a moderate recovery path, although it is difficult to say for sure whether this will happen in the January to March quarter," said Mr Shirakawa.
The strong yen has lead to a weakening exports and the remove of a number of government subsidies have also undermine Japan's auto industry.
However, the Bank of Japan is more confident about the long-term economic picture and voted to continue with the current overnight call loan of 0.0 per cent to 0.1 per cent.
Meanwhile, Reuters is predicting that a number of leading Asia electronics firms are set to report weak profit growth due to the yen.
Written by Mark Smith.
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