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Bank of Japan keeps benchmark interest rate unchanged

Published 09/07/2010, 03:28 AM
USD/JPY
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Investing.com – The Bank of Japan decided to keep its benchmark interest rate unchanged in September, it announced on Tuesday.

Earlier in the day, the BoJ said it was keeping its benchmark interest rate unchanged at 0.10% in September, in line with expectations. The central bank has not changed its benchmark interest rate since December 2008.

A statement on monetary policy released after the announcement showed that the Bank of Japan’s nine-man policy board voted unanimously to keep the interest rate unchanged. 

The statement went on to say Japan's economy showed “further signs of a moderate recovery”, while adding “the backdrop of increased uncertainty about the future, especially for the U.S. economy, and associated instability in the foreign exchange and stock markets, attention should be paid to downside risks to Japan's economy,".

Following the decision, the yen was up against the U.S. dollar, with USD/JPY shedding 0.37% to hit 83.88.

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