Bank of Japan Leaves Rates Unchanged

Written April 7, 2009 at 12:14 AM EST by  

BOJ LEAVES RATES UNCHANGED AT 0.10% (AS EXPECTED); Decision was unanimous; Will expand range of eligible collateral for loans on deeds to government loans within 10yr maturity

- Note: On Apr 5th, Nikkei reported that BoJ may seek to accept privately-placed municipal bonds as collateral for funds
- Expects further weakening in domestic private demand
- Expects pace of decline in output and exports to moderate
- Expects economic recovery in late FY09
- Uncertainty over economic outlook remains high
- Need to watch downside risks of inflationary expectations

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