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Friday, 31st October 2008
In Business In Japan,

Bank of Japan cuts interest rates

Japanese interest rates have been cut for the first time in seven years.

The Bank of Japan made the decision to cut rates from 0.5 per cent to 0.3 per cent in response to the global economic crisis which has taken many countries to the brink of recession.

In a statement, the bank said adjustments in the world economy had increased in severity.

"Under these circumstances, increased sluggishness in Japan's economic activity will likely remain over the next several quarters with exports levelling off and the effects of earlier increases in energy and materials prices persisting," it added.

The cut is Japan's first since March 2001 when a near-zero rate was introduced, reports the Guardian.

In related news, Japan's finance minister Shoichi Nakagawa has said the country is ready to provide money for any bailouts for struggling nations made by the International Monetary Fund.

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