Japan keeps rates on hold at 0.3%

Japan's central bank lowered interest rates in October

Japan's central bank kept its key rate unchanged at 0.3% on Friday but warned that the economic outlook "remains highly uncertain".

Bank of Japan's governor Masaaki Shirakawa expressed doubts that cutting interest rates to close to zero would help the economic recovery.

He said monetary policies alone were not enough to deal with the crisis.

On 31 October Bank of Japan cut its key rate for the first time in seven years, from 0.5% to 0.3%.

It was acting in line with other central banks worldwide in an effort to trim borrowing costs in order to reduce the impact of the credit crisis.

"The Bank of Japan may place less emphasis on moving interest rates now, so market players should not focus on it," said Susumu Kato, chief economist at Calyon Securities.

Asian countries have been increasingly affected by the deteriorating economic climate, with exports falling because of less demand from United States and Europe.

Also on Friday, Singapore confirmed that it was in recession.