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Last Updated: Friday, 11 August 2006, 06:09 GMT 07:09 UK
Japan pegs interest rate at 0.25%
Members of the Bank of Japan's rate setting body
The Bank of Japan is more confident about the economy
Japan's central bank has held its key interest rate at 0.25% - a month after it scrapped its zero rate.

The Bank of Japan had said it would only increase rates gradually, having not lifted them for six years prior to last month's decision.

The rate rise was seen as a sign of the bank's confidence in the strength of the Japanese economy.

The bank also announced that the economy had grown at an annualised rate of 0.8% between April and June.

Although the rate was slower than expected - mainly due to weaker exports to the US - analysts said that the economy should continue to show moderate growth.

Japan's economy - the world's second largest - has seen growth pick up and unemployment fall in recent months, pushing the country out of the deflationary spiral of recent years.

Output has now grown in each of the past six quarters while unemployment is at an eight-year low of about 4%.


SEE ALSO
Japan data eases rate rise worry
09 Aug 06 |  Business
Japan scraps zero interest rates
14 Jul 06 |  Business
Q&A: Japanese interest rates
14 Jul 06 |  Business
Japan raises annual growth target
07 Jul 06 |  Business

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