Bank Of Japan Holds Key Interest Rate As Expected

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The policy board of the Bank of Japan on Thursday unanimously decided to retain the overnight call rate at 0.10%, in line with market expectations.

The last change in the rate was a 0.10% cut in interest rates at the December 2008 meeting.

The bank again repeated its vow to fight deflation and widely retained its economic assessment.

"Japan's economy is picking up mainly due to various policy measures taken at home and abroad, although there is not yet sufficient momentum to support a self-sustaining recovery in domestic private demand," the bank said in a statement.

"In the conduct of monetary policy, the bank will aim to maintain the extremely accommodative financial environment."

The Bank of Japan's baseline scenario projects the pace of improvement in the economy to remain moderate until around the middle of fiscal 2010. Thereafter, the bank expects export-driven growth in the corporate sector to spill over to the household sector, and predicts the economic growth rate to gradually rise.

The policy board of the Bank of Japan on Thursday unanimously decided to retain the overnight call rate at 0.10%, in line with market expectations. (Market News Provided by RTTNews)