BoJ’s rate remains
(22 February 2010 – Japan) The Bank of Japan has announced its latest monetary policy decision, reporting it will leave its benchmark interest rate unchanged at 0.1 percent.
The central bank said in a statement that Japan's economy is picking up, mainly due to various policy measures taken at home and abroad, although there is not yet sufficient momentum to support a self-sustaining recovery in domestic private demand.
Exports and production have been increasing against a backdrop of progress in inventory adjustments both at home and abroad as well as an improvement in overseas economies, especially, fast growth in emerging economies, the central bank said.
BoJ also added that the decline in business fixed investment has been coming to a halt. Private consumption, notably durable goods consumption, is picking up mainly due to policy measures, despite the continued severe employment and income situation.
Meanwhile, the financial environment, with some lingering severity, has continued to show signs of improvement. The CPI (excluding fresh food) has been declining on a year-on-year basis due to the substantial slack in the economy as a whole, but the rate of decline has been moderating mainly reflecting developments in the prices of petroleum products, the policy powers said.
Exports and production have been increasing against a backdrop of progress in inventory adjustments both at home and abroad as well as an improvement in overseas economies, especially, fast growth in emerging economies, the central bank said.
BoJ also added that the decline in business fixed investment has been coming to a halt. Private consumption, notably durable goods consumption, is picking up mainly due to policy measures, despite the continued severe employment and income situation.
Meanwhile, the financial environment, with some lingering severity, has continued to show signs of improvement. The CPI (excluding fresh food) has been declining on a year-on-year basis due to the substantial slack in the economy as a whole, but the rate of decline has been moderating mainly reflecting developments in the prices of petroleum products, the policy powers said.
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