Bank of Japan Leaves Policy Rate Unchanged

May 10, 2010

By a unanimous decision in the Bank of Japan’s first policy meeting since its quarterly in-depth economic review, the overnight money rate target was left at 0.1%.  It has been at that level since a reduction of 20 basis points in December 2008.  There had been one early cut of the same amount in October of that year.  BOJ officials are more optimistic about economic prospects and think deflation may end earlier than imagined before, but they continue to vow to keep a very accommodative monetary policy in the period ahead.

Copyright Larry Greenberg 2010.  All rights reserved.  No secondary distribution without express permission.

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