Thursday, February 14, 2013

Bank of Japan keeps policy unchanged as recession continues.

As expected, the Bank of Japan has maintained the size of its asset purchase program at ¥101T ($1T) and its benchmark interest rate at 0%-0.1%. The BOJ's decision followed news that Japan's economy had contracted for a third quarter in Q4 as GDP shrank 0.1% Q/Q vs consensus of +0.1%, with declining exports and a drop in business investment offsetting improved consumption.