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BOJ's Shirakawa:haven't returned to quantitative easing

Published 12/19/2008, 02:46 AM
Updated 12/19/2008, 02:50 AM

TOKYO, Dec 19 (Reuters) - Bank of Japan Governor Masaaki Shirakawa said on Friday that the bank's decision to cut interest rates and buy more assets did not mark a return to a quantitative easing policy.

"No one on the BOJ board seems to think that boosting base money would stimulate the economy," Shirakawa told a news conference.

He also said Friday's decision to increase outright purchases of Japanese government bonds was not directly aimed at lowering long-term interest rates.

The Bank of Japan cut its key policy rate to 0.10 percent and moved to pump funds into the market to ease a corporate credit crunch as the yen's sharp rise and crumbling demand batter the economy. (Reporting by Leika Kihara and Hideyuki Sano)

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