BoJ leaves interest rates unchanged
Friday, 13 July 2007
TOKYO, July 12 (AFP): The Bank of Japan (BoJ) today left its super-low interest rates on hold at 0.5 per cent but the vote was split 8-1 with one policy board member calling for a rate rise.
Atsushi Mizuno, who has a reputation for being a policy hawk, voted against the proposal by BoJ governor Toshihiko Fukui to leave the overnight call rate at the current level, the central bank said in a brief statement.
Japan's economy is in the midst of its longest recovery since World War II but inflation has been slow to return, with core consumer prices down for a fourth straight month in May while economic growth remains moderate.
The central bank, which has independence in setting monetary policy, is expected to wait until Japan's upper house election set for July 29 is out of the way before making its next move.
Atsushi Mizuno, who has a reputation for being a policy hawk, voted against the proposal by BoJ governor Toshihiko Fukui to leave the overnight call rate at the current level, the central bank said in a brief statement.
Japan's economy is in the midst of its longest recovery since World War II but inflation has been slow to return, with core consumer prices down for a fourth straight month in May while economic growth remains moderate.
The central bank, which has independence in setting monetary policy, is expected to wait until Japan's upper house election set for July 29 is out of the way before making its next move.