Japan leaves rates at 0.1%

by Richard Kilner

Story link: Japan leaves rates at 0.1%

The Bank of Japan’s Policy Board has elected to leave the country’s interest rate unchanged at 0.1%.

The decision not to alter interest rates was made by the board unanimously, and follows on from the Bank of England retaining the UK rate at 0.5% and the European Central Bank (ECB) keeping the eurozone interest rate level at 1%.

The Bank of Japan also chose to extend the temporary period during which extraordinary measures such as outright purchases of CP and corporate bonds and special funds-supplying operations to
facilitate corporate financing.

This decision was also made without dissent, with the specific aims of helping bolster market stability and promoting corporate financing.

The Bank of Japan has also stated that whilst the economic situation in the country has stopped declining, the signs remain mixed and there is no clear recovery at present.