The Bank of Japan refrained from adding measures to expand liquidity as it gauges the risk the yenÃ¢â‚¬â„¢s advance poses to the nationÃ¢â‚¬â„¢s export-led rebound.
The policy board headed by Governor Masaaki Shirakawa kept the benchmark overnight rate unchanged at 0.1 percent and maintained its credit programs for lenders by a unanimous vote, the central bank said in Tokyo today.
Executives and politicians in the past week have voiced concern about the yen, which is approaching a 15-year high, saying it threatens an already weakening economic recovery. Policy makers may provide stimulus should uncertainty about the global economy unsettle currency markets, according to economist Yoshiki Shinke.
Ã¢â‚¬Å“The bank hasnÃ¢â‚¬â„¢t changed its view of the economy so it isnÃ¢â‚¬â„¢t considering easing policy now,Ã¢â‚¬Â said Shinke, a senior economist at Dai-Ichi Life Research Institute in Tokyo. Ã¢â‚¬Å“But market conditions may not allow them to stay patÃ¢â‚¬Â if U.S. policy makers ease policy, putting pressure on the yen, he said.
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