RTTNews - Board members of the Bank of Japan said that capital expenditure - which has already plummeted during the current global economic slowdown - could fall further still, minutes from the July 14 and 15 monetary policy meeting revealed on Friday.

The board went on to say that a fair degree of uncertainty in the economic recovery remains - particularly regarding a complete recovery among exports. The board also cautioned that adjustments to wages and earnings may intensify.

At the meeting, the board voted unanimously to keep the overnight call rate unchanged at 0.10 percent. The central bank did not announce any new policy measures along with the monetary policy statement.

The bank cut rates in December by 20 basis points to the current level - marking the first easing October 31, when the bank lowered rates by 20 basis points from 0.50 percent. That rate cut was the bank's first in seven years, and it snapped a strong of 22 consecutive meetings of keeping the rates on hold. The BoJ had kept rates unchanged since a 0.25 percent increase in February 2007.

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