28 February 2001, 10:38 Text of the Bank of Japan's announcement Wednesday that it had cut interest rates
TOKYO (MktNews) - The following is the full English text of the
Bank of Japan's announcement Wednesday that it had cut interest rates:
1. At the Monetary Policy Meeting held today, the Bank of Japan has
decided on the following policies.
a) Change in the guideline of money market operations (by majority
vote). Encourage the uncollateralized overnight call rate to move on
average around 0.15 percent.
b) Reduction in the official discount rate (by majority vote)
Reduce the official discount rate to 0.25 percent, effective on March 1,
2001.
2. The pace of ongoing economic recovery in Japan has been slowing
further against the background of deceleration of overseas economic
growth and declines in domestic stock prices. Uncertainty over economic
prospects has also increased. At the same time, prices have been
displaying weak developments, and there is a renewed concern that
downward pressure on prices stemming from weak demand might intensify.
3. In light of these developments, the Bank of Japan decided on the
policy measures above for the purpose of strengthening further the
Bank's support for economic recovery as well as ensuring price
stability.
4. With a view to restoring Japan's economy on an autonomous growth
path led by private demand, the Bank will continue to conduct monetary
policy in a timely and flexible manner.
5. In order to ensure a sustainable recovery of Japan's economy,
structural reforms in the financial system as well as in the area of
economy and industry are essential. The Bank strongly hopes that such
reform efforts accelerate further in a variety of fields.
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