The Policy Board of the Bank of Japan has announced that it has decided to leave rates unchanged at between 0% and 0.1%.
The decision, which was unanimous, comes as the appreciating yen and slowing overseas economies led to Japan’s economic activity being approximately flat.
Domestic demand has risen, but exports and production are essentially flat, and inflation remains approximately 0%.
The Bank of Japan warned that the still unresolved sovereign debt crisis in the eurozone could lead not only to weakened European growth but also to weaker global growth due to its effects upon financial markets.
The BBC has reported that stock markets in the UK, France and Germany lost ground in early trading today as Greece continues to struggle to reach a deal with its private creditors.
A deal must be reached in order for the beleaguered nation to receive its next tranche of bailout funds.