Japan sticks with 0.1% interest rates
by Richard Kilner
Story link: Japan sticks with 0.1% interest rates
The Policy Board of the Bank of Japan has elected to retain the country’s interest rate at 0.1%.
The decision, made by unanimous vote, comes as Japan sees its economy continue to improve, primarily due to better economic conditions overseas.
Export and production are both up, as is private consumption, and inflation (by the CPI measure) is declining.
The Policy Board has indicated that its primary area of concern regarding the interest rate is helping Japan overcome the problem of deflation, and that this will dictate its monetary policy decisions in the future.
Yesterday, the Reserve Bank of Australia increased interest rates by 25 basis points, so that the Australian rate now stands at 4.25%.
This Australian trend of increasing rates stands in stark contrast to not only Japan, but also the eurozone and United Kingdom, both of which have retained the record low interest rates first implemented at the height of the financial crisis.