Bank of Japan Keeps Rates Unchanged, Approves Shirakawa as Governor
The Bank of Japan kept interest rates unchanged at 0.5%, which was right in line with market expectations.
The decision was unanimous because it was only the choice the central bank really had in the face of mixed economic data. The Japanese current account and trade balances are due for release tonight. The deterioration in the merchandise trade balance and manufacturing PMI suggests that the surplus could fall short of expectations. Meanwhile the BoJ no longer has a leadership vacuum as Shirakawa becomes the official BoJ Governor.