Japan central bank plays it safe with politicians
Japan's central bank says it won't allow deflation to damage the path to sustained economic growth with price stability. To this end, the Bank of Japan voted to keep its overnight call rate target at 0.1%. That's cheap money by any measure. The bank now offers three-month funds to banks at 0.1%, after Japan's new government pressured it to do more to support the economy. The government wants to avoid a double-dip recession ahead of parliamentary elections in mid-2010. Makes one wonder what the politicians would do if there was no election on the horizon. Read more: Bloomberg, Reuters
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