Bank of Japan leaves interest rates on hold

| April 28, 2011 | 0 Comments

As widely expected, the Bank of Japan (BoJ) has today left interest rates in the range of zero to 0.1%, in a bid to boost the economy following the twin disasters which hit the north-east part of the country last month.

The country is battling to restore calm after an 8.9 magnitude earthquake and tsunami on 11 March.

The twin disasters have caused billions of pounds worth of damage and will impact on the country’s economic growth and the Bank is expected to lower its GDP forecast.

According to analysts, monetary policy is likely to remain unchanged in the short-term, in light of the current situation.

The interest rates decision comes a day after ratings agency Standard & Poor’s downgraded its outlook on Japan’s sovereign debt after suggesting reconstruction costs could pass the $600 billion mark.

In other news today, it was revealed Japanese industrial output fell by 15.3% last month – the largest ever fall as disruptions in the supply chain continued to impact on production.

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