RTTNews - Following a two-day Monetary Policy Meeting, the Bank of Japan announced that it would encourage the uncollateralized overnight call rate to remain around 0.1%. The decision came in-line with expectations. The last change in rate was a 0.10% cut in interest rates at the bank's December 2008 meeting.
The committee said in the post-meeting policy statement that economic conditions have stopped worsening. While acknowledging that domestic private demand continues to be weak, the central bank said export and production have begun to recover. Public investment is also seeing resurgence.
The committee expects growth and inflation to remain generally unchanged through 2010. That said, the bank expects the rate of price declines will moderate from the later half of fiscal year 2009, while also expecting the economy to start recovering by the timeframe.
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