According to the Shanghai Securities News report: Japan's Central Bank announced on 15 October, maintain benchmark interest rate at 0.1% of historically low levels. Analysts expected, has four consecutive quarters of decline in Japan's economy is expected to recover in the second quarter, but growth moderate growth is still not firmly based. In view of this, the Central Bank announced that day, the month of September will be original to the maturity date of a number of emergency financing arrangements extended for 3 months, until the end of this year.
Similarly, in Thailand's Central Bank also Wednesday schedule announced that it will maintain the benchmark interest rate unchanged at 1.25%, and said that if economic growth slows, ready to cut interest rates further.
Extending the number of emergency financing measures
After two days of Conference, yixi Japan's Central Bank announced on 15 October, continue to maintain 0.1% overnight lending rate unchanged.
Japan's central bank interest rates in the last revised in December last year, when it announced that it will inter-bank offered rate unsecured overnight from 0.3% to 0.1%, since then it has interest rates remain unchanged to this day. The Bank also decided, at that time provisionally adopted the direct purchase of commercial paper and short-term bonds help corporate finance, and purchase of Government securities to capital markets into long-term funding to increase liquidity.
In the 15-day meeting, Japan's Central Bank announced that the authorities have decided to buy corporate bonds and other corporate finance assistance measures for the implementation period from the end of September to the end of December. The meeting was of the view that the economic and financial situation there downlink risks, it is necessary through non-conventional measures continue to provide assistance.
Been extended aid measures including purchase of financial institutions holding company debt, the purchase of commercial paper (CP) as well as to the financial institutions provide unlimited rate of interest at the rate of ultra-low 0.1% secured loans. These measures were to expire at the end of September will be.
Analysts said, taking into account the uncertainty of the global economic situation, combined with Japan's domestic political situation the recent turmoil, central banks hope to extend the emergency financing measures to stabilize the market confidence, but also reasonable.
Japan Prime Minister ASO announced this week ahead of a general election, poll shows, the ruling liberal democratic party might lose the election. In the recent parliamentary elections in Tokyo, the ruling party since people just get all 127 seats of 38 seats, than existing 48 I dropped significantly, the largest opposition party, the Democratic Party won 54 seats than the existing 34 seats increase significantly, becoming Tokyo the largest party in Parliament.
Slight downturn in economic growth expected
Japan's stock market 15, has not been too much of an impact of Central Bank meetings, Nikkei index closing equaled, slightly 0.1%. The Central Bank's decision was not a surprise to the market expected.
In the 15-day meeting, Japan's Central Bank also has a slight downturn in economic growth is expected. However, the Central Bank to the current economic situation of judgement "from last month, significantly deteriorated gradually stopped falling" was changed to "has stopped falling."
In the report, released in June, Japan's Central Bank for the second consecutive monthly increases in the assessment of the national economy, says Japan's economy has continued to deteriorate "stop." The Bank then stated that the next few months, Japan's economy would gradually showing clearer signs of stability. In may, a regular meeting, Japan's Central Bank since July 2006, for the first time since the rise of Japan's economic situation assessment.
However, this recovery may not have sustainability as a larger profit pressures faced by enterprises has continued to reduce investment and layoffs, banks are afraid to lend out money.
The analyst also noted that the Administration launched a series of measures has already begun to receive the results. Switzerland-Credit Policy Division, said the Central Bank did not Kawano put emergency financing arrangements extended for six months until the end of this fiscal year, but only extended 3 months, until the end of this year. This may indicate that it is considered that, at least not the financing situation of enterprises continues to deteriorate.
The industry believes that compared to the fed and other central banks in the United Kingdom monetary authorities, Japan's Central Bank currently facing the exit hyper-liberal policy and pressure is relatively small. This is because the Bank's assets acquired a very narrow, while inflation risk very low.
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