Economy
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Japan Central Bank to keep interest
Japan Central Bank maintained interest rates and the state's second-largest economic power in this world in the process of recovery. The Board of the Bank of Japan policy, as reported by AP news agency decided unanimously to maintain very low interest rate 0.1%.
Central Bank has never changed interest rates since December 2008. Japan's central bank described the country's economy "rose" because of increased foreign demand and a stimulus package.
It is estimated that Japan will experience moderate growth while at this time and will accelerate the company's recovery. However, also mentioned that the momentum is still too weak to encourage economic recovery based on requests from consumers.
This decision was expected after the Central Bank of Japan's major report last week confirmed that many companies have improved conditions. Quarterly business sentiment survey showed confidence increased for four consecutive quarters amid a global recovery. The data is likely to provide justification for the Bank of Japan issued a monetary policy.
Central Bank council member in March decided to increase liquidity by extending low-interest loan program. The program comes amid political pressure for government to improve policies toward deflation. Central Bank said it would not provide a space for deflation. This deflation can disrupt economic growth by tapping corporate profits, triggering a pay cut and caused a delay spending by consumers.
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