Tuesday, January 12, 2010

BOJ Official: Low Japan Interest Rates May Persist Until 2011

BOJ Official: Low Japan Interest Rates May Persist Until 2011

SHANGHAI -(Dow Jones)- Japan's low interest rates may persist until next year because of a poor outlook for the world's second-largest economy, a senior official from the Bank of Japan said Monday.

"It's a possible scenario" because current forecasts for the Japanese economy are weak, Shinobu Nakagawa, associate director-general of the BOJ's International Department, told Dow Jones Newswires on the sidelines of a forum.

Nakagawa also said an appreciating yen helps sustain demand for Japanese Government Bonds, as a strengthening currency discourages Japanese households from investing in foreign assets and instead helps banks draw more yen-denominated savings deposits.

-By Michelle Ng and Shen Hong, Dow Jones Newswires; 86-21-6120-1200; michelle.ng@dowjones.com

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1 comment:

  1. That's Good, i think Pakistan should need to control interest as well, In Pakistan i think 11 to 12% interest rate is which is very high with respect to other countries. QMobile Noir Quatro Z3 Price in Pakistan