Japan keeps rates at 0.1%

by Richard Kilner

Story link: Japan keeps rates at 0.1%

The Bank of Japan’s Policy Board has chosen to retain the country’s interest rate at 0.1%.

Japan has emerged from recession, although the economy remains somewhat weak.

Private consumption has begun to recover, although the jobs market and income remain badly affected by the after-effects of the recession.

The Bank of Japan has forecast moderate growth until mid-2010 when it predicts the recovery rate will start to gradually pick up.

Meanwhile the UK remains in recession, unlike Japan, Germany or France, and this month saw the quantitative easing asset purchase scheme increased by £25bn to total £200bn.

The Bank of England retained the record low interest rate of 0.5%, and although most central banks are still not increasing rates, the Reserve Bank of Australia has added 50 basis points in the last two months, suggesting that in some parts of the world the recovery is coming along better than in the UK.