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Bank of Japan leaves interest rate unchanged

Published 01/25/2011, 02:26 AM
USD/JPY
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Investing.com – The Bank of Japan kept its benchmark interest rate unchanged, it announced on Tuesday.

In a statement, the BoJ said it was keeping its benchmark interest rate unchanged between a range of 0.0% to 0.1%, widely in line with expectations.

A statement on monetary policy released after the announcement showed that the Bank of Japan’s nine-man policy board voted unanimously to maintain the interest rate at its current level.

The bank added that Japan's economy still shows signs of a moderate recovery, but the recovery seems to be pausing. Meanwhile, inflation is declining on a year-on-year basis due to the substantial slack in the economy as a whole, but the slowing trend in the pace of decline has continued.

The BoJ predicted economic growth of 3.3% for the 2010 fiscal year, compared with the 2.1% estimated in October.

Following the decision, the yen was up against the U.S. dollar, with USD/JPY shedding 0.07% to hit 82.48.


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