Start the conversation
As expected, the Bank of Japan (BOJ) held interest rates at 0.1% Friday as the budding recovery in the world's second-largest economy is showing signs of slowing.
"The BOJ felt compelled to show that it doesn't accept deflation and is committed to fighting it," Yasunari Ueno, chief market economist at Mizuho Securities Co. Ltd. told Bloomberg News. "It's reinforcing the view that interest rates will stay very low."
Weak international demand for Japanese goods and a strengthening yen prompted deflation earlier this year, and the nation's consumer price index (CPI) - excluding fruit, vegetable and seafood prices but not oil products - is expected show a decline of 1.7% in November according to a median estimate of 25 analysts surveyed by Bloomberg. The CPI fell 2.2% in October and 2.3% in September.