Bank of Japan Holds Rate Unchanged as Expected

11:47 04/09 (CEP News) – As expected, the Bank of Japan left its target for the overnight rate at 0.50%, citing slowing economic growth from cautious corporate and capital spending, and moderate increases in inflation.

The BOJ also failed to mention previous statements highlighting expectations for the economy to experience moderate growth in the near-term, saying rather that GDP will temporarily slow before resuming moderate expansion later in 2008.

"The difference is mainly in the word 'growth' versus 'expansion' - a difference that would presumably reflect the Bank's expectation for the economy to grow roughly in line with potential rather than to exceed potential," explains a research note from Barclays Capital.

Full Article available @ http://economicnews.ca/login.php?page=reportsDetails&newsid=69647&prevview=&view=details&country=&plimit=0&category=All%20Economic%20Reports