Japan's Central Bank Maintains Interest Rate

(MENAFN- Kuwait News Agency (KUNA)) TOKYO, Dec 19 (KUNA) -- Japan's central bank on Thursday kept its policy rate unchanged at the end of a two-day policy meeting.
Bank of Japan's (BOJ) Governor Kazuo Ueda and his eight board colleagues voted by 8 to 1 to keep the benchmark interest rate steady at around 0.25 percent, holding the policy the BOJ made in July, according to a statement released by the BOJ.
In late July, the BOJ raised the rate from a range of around zero to 0.1 percent, it said.
"Japan's economy is likely to keep growing at a pace above its potential growth rate, with overseas economies continuing to grow moderately and as a virtuous cycle from income to spending gradually intensifies against the background of factors such as accommodative financial conditions," the central bank commented on the current economic situation.
Following the rate decision, the Japanese yen weakened to the lower JPY 155 range against the dollar in Tokyo, hitting a one-month low. As of 3:30 pm (0930 GMT), The greenback traded at JPY the Japanese currency traded at JPY 155.14-16 in Tokyo.
Policymakers apparently judged that for now they will keep an eye on wage-hike trends during the new year, inflation, and the effects of policies of US President-elect Donald Trump, public broadcaster NHK said.
Many officials have indicated that Japan's economy and prices are trending as predicted, opening the door for a future hike, it noted. (end)
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