Japan’s central bank maintains interest rates
15 Jul 2009
Japan's central bank has maintained its interest rate at 0.1 per cent, extends various corporate financing measures amid consternation of a delicate economic recovery, though the worst seems over.
"Japan's economic conditions have stopped worsening," said Japan's central bank, in a statement, adding that Japan's industrial production and exports are now improving and public investment is increasing, it said.
Japan's central bank also said that it would extend various measures to facilitate corporate financing for another three months such as such as buying corporate bonds from commercial banks.
Japan's central bank forecasts economy to recover in the second half of this year.
Japan's economy shrank at its fastest pace recorded since 1955 in the January-March 2009 period, as the country's exports collapsed due to the ongoing global recession.(See: Japan's GDP shrinks 15.2 per cent in January-March 2009)
Since then, industrial output rose for the third straight month in May to 5.9 per cent from the previous month, at a record pace in the second quarter. (See: Japan's May industrial output up 5.9 per cent)
