BOJ says to take timely action, keeps rates on hold

(For more stories on the Japanese economy, click [ID:nECONJP])

TOKYO, Sept 7 (BestGrowthStock) – The Bank of Japan kept interest
rates steady and held off on new policy steps on Tuesday but said
it will take appropriate and timely action when necessary.

In a statement on its rate decision, the BOJ repeated that it
needed to watch out for downside risks to Japan’s economy as
uncertainty heightens over the U.S. economic outlook, which has
led to unstable moves in currency and stock markets.

But it kept its assessment on the Japanese economy unchanged,
saying it was showing further signs of a moderate recovery.

As widely expected, the BOJ kept interest rates at 0.1
percent in a unanimous vote.

Governor Masaaki Shirakawa will hold an embargoed news
conference later on Tuesday, with his comments expected to come
out sometime after 4:15 p.m. (0715 GMT).

The BOJ boosted its cheap loan scheme at an emergency meeting
on Aug. 30, bowing to government pressure for action to protect a
fragile recovery after the yen’s surge to a 15-year high against
the dollar. [ID:nTOE67S01V]

But the move did little to deter yen gains or falls in stock
prices as investors saw it as a symbolic gesture that had barely
any effect in supporting the economy.

The BOJ is gearing up for further monetary easing next month
but is no mood to act before that unless the yen rises at a pace
of 1 to 2 percent in a single day towards its all-time high above
80 to the dollar. (JPY=: )
(Reporting by Leika Kihara, Tetsushi Kajimoto; Editing by Edmund
Klamann)

BOJ says to take timely action, keeps rates on hold