(25th January 2011 – Japan) Japan’s central bank has opted to keep its key interest rate steady at virtually zero, to protect the still-recovering economy.The nine-member monetary policy setting committee voted unanimously to keep the overnight call rate unchanged at 0 to 0.1 percent after a two day meeting.
‘Japan’s economy still shows signs of a moderate recovery, but the recovery seems to be pausing,’ it said in its statement.
Japan’s economy has been pressured by slowing overseas demand, a persistently strong yen and deflation. The employment and income situation remains ‘severe’ and private consumption has fallen recently, the central bank said.
The central bank predicts, however, that the economy will gradually find its footing again and return to a ‘moderate recovery path’ in tandem with a growing global economy.