No change from Bank of Japan

21/12/10 15:45 CET

economy

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At its latest monetary policy meeting the Bank of Japan has kept interest rates unchanged.

Policymakers said the world’s third largest economy continues to show signs of moderate recovery, but noted a weakening of factory output and business sentiment in Japan.

Economists said that shows the central bank is aware of risks to growth which could require a response in the shape of more monetary easing.

Bank of Japan Governor Masaaki Shirakawa said it will carefully examine the impact of long-term interest rate moves on the country’s economy.

Shirakawa said the bank’s monetary easing steps in October have had some effect in pushing down longer-term interest rates in Japan.

More about: Economy, Interest rates, Japan

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