Japanese Economy Continuing Moderate Growth As Interest Rates Remain Stable

By Stewart Douglas

The Bank of Japan have published their monthly report, detailing the progress of the Japanese economy since their last report.

The report has revealed that Japan has, and will continue to grow in line with its moderate growth strategy over the foreseeable future, having surpassed analyst expectations and outperformed the Bank’s own forecasts in terms of economic performance.

The performance of the Japanese economy reflects a trend of astonishing growth in the region since the 1960s, and a recovery from the slowdown of 2001 - a sign of the efficiency and competence of Japanese economic management.

Despite failed attempts to privatize many of Japan’s national institutions, and certain controversial policy announcements over the last two years, the Japanese economic environment has remained fairly stable since recuperating from the global market pressures of 2001.

The Japanese economy, largely dependent on agriculture, manufacture and services industries, is continuing on its overall growth trend, as it has been with minor exception since the 1960s. This consistent performance makes it one of the most evergreen economies of the last century.

The Bank of Japan have also today voted to maintain interest rates at their current level of 0.5% for the fifth consecutive month.

The vote was the first time in 5 months the central Bank’s nine-member strong policy board have failed to reach unanimity in policy decision, with a vote of eight-to-one in favour of maintaining rates at their current level, risen from 0.25% in February. 

The consumer price index has shown a decrease over the last four months, although this is not expected to last, with the Bank predicting gradually increasing consumer prices over the coming months. 

Toshihiko Fukui, Governor of the Bank of Japan has said that interest rates will be adjusted gradually as required to reflect the rate of economic growth and inflation.