Japan’s interest rates remain at 0.5%

by Richard Kilner

Story link: Japan’s interest rates remain at 0.5%

The Bank of Japan has decided to leave interest rates unchanged at 0.5%.

The market had expected no change, due to concerns regarding exports to America and the slumping Japanese housing market.

Toshihiko Fukui, the central bank’s governor, has stated that the turbulence in the world financial markets is set to continue, and will not calm down for some time.

He did, however, say that he believed Japan’s gentle recovery should continue unabated, contingent upon careful planning.

Japan’s economic growth rate is predicted to slow from the strong 3.7% it saw in the final quarter of last year, provoking speculation that rates could be cut.