11 October 2007, 09:39  Bank of Japan keeps overnight call rate unchanged

The Bank of Japan kept its overnight call rate target unchanged at 0.5 percent for the ninth straight meeting, a decision that was widely expected. The move will give the central bank more time to see how the credit market recovers from the summer market turmoil and if they have had any impact on the US economy, one of Japan's most important trading partners. The BoJ's decision follows the European Central Bank's move to maintain its interest rates following emerging downside risk to the EU economy due to tighter credit. The BoJ said the vote by its nine-member policy board was eight to one, with Atsushi Mizuno voting against Governor Toshihiko Fukui's proposal to leave the rate unchanged. The yen was slightly weaker immediately after the decision was announced, trading at 117.20-24 to the US dollar from 117.14-18 yen earlier.

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