-
Japan:
Second India-Japan strategic dialogue on economic issues
China:
India-Brazil-South Africa to cooperate in health sector
South Korea:
South Korea Gives US Beef The All Clear
India:
Indian government approves re-structured APDRP
Pakistan:
Restoration of Indo-Pak dialogue to push trade
Singapore:
India-Brazil-South Africa to cooperate in health sector
Thailand:
Fastest Growth for Thailand Economy in Six Quarters
Taiwan:
Taiwan Enjoy Expanded Trade Surplus
Indonesia:
Central Bank Chief Of Indonesia Detained
Malaysia:
Malaysia economy grows and banking liberalises
Bank of Japan Maintain Interest Rates Freeze
by Stewart DouglasThe Bank of Japan has today announced its decision to maintain interest rates for the sixth consecutive month.
The central bank, responsible for determining interest rate policy on a monthly basis, has chosen to maintain interest rates at 0.5%, after widespread speculation that they would increase by a quarter of a percentage point.
The move has been reportedly backed by 8 out of the 9 members of the monetary policy committee, with the dissenting member voting to increase rates this month.
Recently published economic indicators from within Japan had lead many analysts to believe they were experiencing a slowing in activity, partly as a result or spiraling fuel costs and the shrinking trade surplus.
It was thought that by maintaining interest rates, the Bank could allow time for the economy to recover without risking having a detrimental effect on growth.
While the Japanese authorities maintain that the economy is in a period of moderate growth, figures released earlier in the week noted that the national trade surplus had closed significantly for the first time in almost a year - an indicator that the economy could be in for a slowdown, off the back of increasing fuel prices.
Analysts have attributed much of the Bank’s thinking to the recent upheavel on world stock markets. With ongoing unrest eminating from the US sub-prime lending crisis, analysts are suggesting that raising rates during such a risky period would be too gung-ho, favouring a cautious approach to avoid economic damage.
The Bank of Japan last changed its interest rate policy in February of this year, doubling the 0.25% interest rates of the time.
Prior to that, rates had remained stable since July 2006, reflecting the continuity favoured by the Japanese central bank during that period as a means of promoting economic stability.
Add to Bookmarks:
Stories related to: Bank of Japan Maintain Interest Rates Freeze
- Bank of Japan Maintain Rates Again
- Bank of Japan in unanimous vote ot raise interest rates
- Bank of Japan hikes interest rate
- Reserve Bank of India may retain interest rates, raise CRR
- Bank Of Korea In Shock Interest Rate Hike
- Overnight rates cause concern in Japan
- Hike in interest rates may worsen the price and supply situation: ASSOCHAM
- Bank of Japan Put Economy On Track For Sustainable Price Growth
- Bank of Japan ends loose money policy
- Banks slightly lower on Bank of Japan rate decision
Visited 147 times, 1 so far today