The Bank of Japan cut its benchmark interest rate for the first time in seven years on Friday, joining earlier moves by the U.S. Federal Reserve and other central banks to blunt the global financial downturn. The bank’s policy board voted to lower the overnight lending rate between banks by 0.2 percentage points to 0.3 percent,
reducing borrowing costs to rekindle growth in Asia’s largest economy. The bank also seemed to confirm fears here that Japan was heading into recession by lowering its growth forecast for the current year to around zero, citing higher energy prices and weakening export demand. Bank officials have said they feel hard pressed to find ways to coordinate with the Fed, which cut rates earlier this week, and other central banks in combating the downturn. The eight members of the policy board were split four-to-four on the cut, with the bank governor, Masaaki Shirakawa, casting the deciding vote in favor.
Would this help Japan to stop heading into recession?
Would it help the global economy to balance?
reducing borrowing costs to rekindle growth in Asia’s largest economy. The bank also seemed to confirm fears here that Japan was heading into recession by lowering its growth forecast for the current year to around zero, citing higher energy prices and weakening export demand. Bank officials have said they feel hard pressed to find ways to coordinate with the Fed, which cut rates earlier this week, and other central banks in combating the downturn. The eight members of the policy board were split four-to-four on the cut, with the bank governor, Masaaki Shirakawa, casting the deciding vote in favor.
Would this help Japan to stop heading into recession?
Would it help the global economy to balance?