Japan keeps interest rates at close to zero

Japan has kept its key interest rate at between zero and 0.1% as policymakers continue to try to bolster the country’s fragile economic recovery.

The central bank warned that the recovery “seems to be pausing”.

Japan has been suffering from a strong yen, weak exports and almost two years of falling prices.

Last month, the government passed a $61bn (£39bn) stimulus package, the latest in a series of measures designed to boost the economy by creating jobs.

The Bank of Japan also said it would consider taking further steps to aid the recovery.

In October, the bank announced a 5tn yen ($60bn; £40bn) asset purchase scheme designed to boost demand in the economy.

Announcing the latest rate decision, the bank said that while the economy was showing signs of “moderate recovery”, it would “continue to carefully examine the outlook for economic activity and prices, and take policy action in an appropriate manner”.

BBC News

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell