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BANK OF JAPAN CUTS RATES AS INDUSTRIAL OUTPUT, STOCKS FALL.

AsiaPulse News

| March 01, 2001 | COPYRIGHT 2001 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

TOKYO, March 1 Asia Pulse - The Bank of Japan's policy board on Wednesday cut the overnight call rate target and official discount rate by 0.1 percentage point to 0.15 per cent and 0.25 per cent, respectively, effective Thursday.

The surprise cuts - which come only two weeks after the central bank reduced its discount rate for the first time since September 1995 - are the result of growing alarm over the sharp fall in industrial output and falling stock prices, BOJ Governor Masaru Hayami said.

When asked about the possibility of a further monetary easing, Hayami said, "I can't say whether there will be a return to the zero-rate policy," added, "We will continue to consider the options available."

Analysts said his comments highlight the BOJ was keeping additional ...

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Source: HighBeam Research, BANK OF JAPAN CUTS RATES AS INDUSTRIAL OUTPUT, STOCKS FALL.

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