Brighter days ahead for Japanese economy: central bank

May 22nd, 2009 - 12:49 pm ICT by IANS  

Tokyo, May 22 (DPA) Japan’s central bank Friday raised its assessment on the world’s second-largest economy for the first time in more than two years as it saw positive signs for a recovery.
“Economic conditions have been deteriorating, but export and production are beginning to level out against the backdrop of progress in inventory adjustments both at home and abroad,” the Bank of Japan said in a statement.

Its policy board also voted unanimously to keep the bank’s benchmark short-term interest rate unchanged at 0.1 percent.

Finance Minister Kaoru Yosano Wednesday assured the country that Japan’s economy had seen the worst of the recession and would return to growth after the government reported Wednesday that it had seen its sharpest-ever annualised contraction at 15.2 percent in the January-March quarter.

Analysts predicted Japan’s economy would recover in the current quarter with a growth rate of 3 percent.

The Bank of Japan also decided Friday to expand the range of collateral it accepts to supply funds to financial institutions to help pull the economy out of its worst recession since World War II.

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