Bank of Japan: Japan's economy is expected to stabilise in the next few months

Japan's Central Bank 21, published June Yixi meeting minutes shows that policy Council members agreed that Japan's economy has stopped deteriorating, and is expected to stabilise in the next few months. Also in view of the Japan Economic and market volatility, policy Board members unanimously voted to purchase corporate bonds and commercial paper, and so help enterprises financing of temporary liquidity measures extended to the end of December.

Economy stabilises signs appeared

Minutes of the show, members of the policy Council on 15 and 16 June in yixi meeting agreed that Japan's economy has stopped deteriorating economy stabilises sign will appear in the next few months. Japan's Central Bank for the second consecutive month on its economic assessment upward, the Bank said "deteriorates substantially in experience, the economic situation has started to worsen. ”

This judgment and the assessment made by the Government of Japan. Japan's Cabinet Office report, released in July by the assessment of the overall economy, says export and industrial output is recovering, personal spending, there have been signs of the Government of Japan, this is the third consecutive month for upward economic assessment.

Monthly economic report, although the situation remains critical, but the economy has signs of recovery in the near future. Looking ahead, the Government of Japan indicated that, as the manufacturer of complete cleanup inventory, and begin to improve yield, it is expected that the economy will be in the next few months to recover. In the various components of the economic assessment of the Government of Japan catches expected for export, as Japan's economy is mainly driven by exports are recovering. Japan Government also increases the personal consumption of the assessment referred to the gross domestic product (GDP) 55% of personal consumption recently there have been signs of improvement.

Japan's Central Bank in July this year, Japan's economy and published prices expected in 2009 GDP for the financial year is expected decline in value is rounded down to the month of April 3.4%, expected value is shrinking 3.1%. Japan's Central Bank also core consumer price index (CPI) is expected to decline 1.3% decline expected for before 1.5%.

Extension of temporary liquidity measures

In July of yixi meeting, Japan's Central Bank Policy Committee decided to maintain the unsecured overnight clearance rates in 0.10% unchanged. Also in view of the Japan Economic and market volatility, temporary liquidity measures also will be extended. These measures are aimed at expanding liquidity on the occasion of the financial crisis, including commercial paper and corporate bond purchase programme and loan schemes, etc. These temporary liquidity measures expire at the end of September, has been postponed to the end of December.

The minutes also show that the policy Council members in temporary mobility measures in the event of a disagreement on the issue, one member stated: "corporate finance has declined overall tensity, central banks should start considering specific method to terminate the temporary and specific measures. ”