Wednesday, 22 December 2010

BoJ keeps rate unchanged, Japanese exports accelerate

The Bank of Japan left its official interest rate unchanged on Tuesday. AFP/CNA reports:

Japan's central bank on Tuesday kept its key rate unchanged as it said it would continue measures to boost the faltering economy amid fears of a looming slowdown.

The board made a unanimous decision to keep the key rate at between zero and 0.1 percent after a two-day meeting, warning that a fragile recovery from deep recession was "pausing" despite showing "signs of a moderate recovery".

While the BoJ describes the recovery as "pausing", November trade data released today did show an acceleration in exports. Bloomberg reports:

Japan’s export growth accelerated for the first time in nine months as a rebound in global demand helped the nation’s economy withstand an advance in the yen.

Overseas shipments increased 9.1 percent in November from a year earlier, compared with October’s 7.8 percent, the Finance Ministry said in Tokyo today. The median estimate of 19 economists surveyed by Bloomberg News was for a 10.3 percent gain.

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