|
(CEP News) Frankfurt - Bank of Japan Governor Masaaki Shirakawa said increasing downside growth risks may lead to the Japanese economy taking longer than expected to recover. He also noted the rising level of uncertainty in the economy.
"The timing of the recovery may be delayed slightly compared with our initial expectations," the central banker said in a press conference following the Bank's decision to leave its benchmark rate unchanged at 0.5% on Tuesday. However, Shirakawa also said that falling commodity prices are helping the economy, as well as accommodative monetary conditions. The central banker added that policy rate decisions depend on the situation faced by specific countries and that co-ordinated actions between countries that don't take this into account would be "undesirable". Turning to the current financial crisis, Shirakawa said that the best contribution central banks can make is providing sufficient liquidity. Increasing the capital of lenders in key for the turmoil, he said, noting that tension in short-term money markets is rising. By Todd Wailoo,
This email address is being protected from spam bots, you need Javascript enabled to view it
, edited by Stephen Huebl,
This email address is being protected from spam bots, you need Javascript enabled to view it
CEP Newswires - CEP News © 2008. All Rights Reserved. www.economicnews.ca The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News. A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer. |
