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 elected to keep the country’s interest rate steady at 0.1%.
The decision, which was reached unanimously, comes as Japan’s economy continues its moderate recovery.
The growth of emerging economies have helped encourage Japan’s exports and production, with private consumption also on the rise.
In Japan inflation (excepting fresh food) is falling, in stark contrast to the United Kingdom, where CPI has risen again, this time to 3.7%.
Earlier this month the Bank of England held the British interest rate at 0.5%, the lowest in history, and reaffirmed that the quantitative easing asset purchase programme would not exceed its £200bn limit.
The Monetary Policy Committee may face a growing dilemma over the coming months, with the recovery in the UK still faltering, yet at the same time inflation continues to rise sharply.