Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

Trash collection goes high tech

Read more

WEB NEWS

Web users react to escalating violence in Gaza

Read more

FASHION

Paris, Haute Couture Fall/Winter 2014-2015.

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

  • Major differences remain as deadline looms in Iran nuclear talks

    Read more

  • Germany vs Argentina - history and genius clash in World Cup final

    Read more

  • Israeli navy attacks Hamas base as tanks line up along Gaza border

    Read more

  • Germany’s Tony Martin wins ninth stage of Tour de France

    Read more

  • French military to extend Mali 'counterterrorism' operations into Sahel

    Read more

  • Boko Haram claims Nigeria attacks and supports Iraqi militants

    Read more

  • Paris’s Bastille Day fireworks ‘an homage to victims’ of WWI

    Read more

  • French court lifts mayor’s ban on Muslim hijab at beach

    Read more

  • Shells land in Russia as eastern Ukrainians flee fighting

    Read more

  • Rival Libyan militias exchange heavy fire at Tripoli airport

    Read more

  • Holland beat hosts Brazil 3-0 to finish third in World Cup

    Read more

  • Iraqi parliament fails to agree on new leadership

    Read more

  • Afghan presidential candidates agree to full vote audit, Kerry says

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Video: Outrage in wake of deadly Casablanca buildings collapse

    Read more

Bank of Japan drops benchmark rate to 0.1%

©

Latest update : 2008-12-19

The Bank of Japan has slashed its interest rates to just 0.1%, prompting the Nikkei stock index to go up - then go down again. Earlier the Japanese government announced it was predicting zero growth for the year ahead.

AFP - The Bank of Japan on Friday slashed its benchmark interest rate to just 0.1 percent, joining a wave of global cuts as it warned of a sharp deterioration in the world's second largest economy.
   
Japan's central bank also tried to shore up ailing credit markets by announcing it would start directly buying commercial paper, the short-term debt that companies issue to run their daily operations.
   
In a 7-1 vote, the Bank of Japan policy board said that it was cutting the benchmark rate of borrowing from 0.3 percent to 0.1 percent.
   
The level is even lower than the top range of 0.25 percent set this week by the US Federal Reserve, which drastically cut its own rate in hopes of bolstering the global economy.
   
Japan's benchmark Nikkei stock index jumped after the rate cut before slipping back down. The yen also eased back modestly against the dollar after this week soaring to a 13-year high against the greenback.
   
The Bank of Japan, issuing a statement explaining its decision, offered a bleak picture of the economy.
   
"Financial conditions have deteriorated sharply on the whole," it said.
   
"Under these circumstances, economic conditions have been deteriorating and are likely to increase in severity in the immediate future," it said.
   
It voiced concern that Japanese exports -- which for years fuelled the country's economic growth -- were decreasing due to slack demand overseas.
   
"Given the slowdown in overseas economies and the turmoil in global financial markets, it will likely take some time for the necessary conditions for Japan's economic recovery to be satisfied," it said.
   
Government leaders had made little secret that they would welcome a rate cut by the central bank, which is independent.
   
Lower rates often bring down the value of currencies by making them less lucrative, although they can also support the currency if seen as bolstering the overall economy.
   
The stronger yen makes Japanese exports less competitive overseas, further weakening the outlook for companies suffering from the global downturn.

Date created : 2008-12-19

Comments

COMMENT(S)