Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Navigation
Primary Navigation
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Top Stories
Most Popular
Secondary Navigation
Singapore
Asia Pacific
World
Search
Search:
Japan's central bank warns of further risks
AFP - Saturday, November 22
TOKYO (AFP) - - Japan's central bank warned Friday Asia's biggest economy may worsen, but it dampened hopes of further interest rate cuts to ease the recession, which has prompted more job cuts at carmakers.
The Bank of Japan left its key interest rate unchanged at 0.3 percent at a two-day meeting as expected, three weeks after reducing borrowing costs for the first time in seven years to tackle the recession.
Japan's real economy may deteriorate further if financial markets worsen, said Bank of Japan governor Masaaki Shirakawa.
But he repeated that cutting interest rates too much also posed a risk, dousing speculation about a possible further reduction in borrowing costs.
"With an extremely low level of interest rates, taking additional measures could create various problems from the point of view of securing a smooth functioning of financial markets," Shirakawa said.
The BoJ said in a statement that the outlook for Japan's economy "remains highly uncertain and given the slowdown in overseas economies and the turmoil in global financial markets, it will likely take some time for the necessary conditions for Japan's economic recovery to be satisfied.
"Economic activity has been increasingly sluggish due to the effects of earlier increases in energy and materials prices and the decrease in exports, and this situation will likely persist over the next several quarters," it said.
Japan confirmed this week that it had entered a recession for the first time in seven years, dragged down by weak exports and lower business investment.
Last month the BoJ cut its key interest rate by 20 basis points, the first reduction since March 2001, when it introduced an unprecedented policy of almost free credit to try to pull the economy out of the deflationary doldrums.
Since the last meeting, exports appeared to have deteriorated, while the financial crisis has been pressuring Japanese markets, Shirakawa said.
Japanese exports fell at the fastest pace in almost seven years in October as Asian demand cooled, prompting companies to reduce costs.
Japanese carmakers plan further downsizing to cope with the financial crisis, with Toyota Motor cutting 3,000 temporary jobs and Honda Motor reducing its global production.
Toyota Motor Corp. plans to half its temporary workforce in Japan to cope with the deteriorating market conditions, a company spokesman said.
Honda Motor said it would cut its production this year by 79,000 vehicles from an earlier target to cope with falling sales.
Japanese automakers have expanded rapidly in recent years to meet brisk demand for their fuel-efficient cars, but they have not been immune to the global economic downturn, even if they are in much better shape than their US rivals.
"The challenges facing the global auto sector are unprecedented, reflecting structural changes that will likely change the landscape of the industry," warned Tatsuya Mizuno, a director at Fitch Ratings.
Email Story
IM Story
Printable View
Blog This
Recommend this article
Average (0 votes)
Sign in to recommend this article »
Most Recommended Stories »
Related Articles: China's Economy
Bush bows out, China assertive at APEC summitAFP - 1 hour 23 minutes ago
Job slashing heightens global recession fearsAFP - 1 hour 48 minutes ago
European stocks drop as Dow erases early gainsAP - Saturday, November 22
Malaysian inflation falls to 7.6% in October on lower fuel pricesAFP - Saturday, November 22
Related Articles: Business
Web sites offer real estate agent rankingsAP - 47 minutes ago
A look at how Heinz, Smucker did in the quarterAP - 51 minutes ago
Geithner likely treasury pick; Clinton 'on track'AP - 51 minutes ago
Vloggers and stars alike gather for YouTube LiveAP - 54 minutes ago
US STOCKS-Wall St rebounds on reported Treasury nominationReuters - 1 hour 8 minutes ago
Enlarge Photo
Japan's central bank warns of further risks
Related Photos
Slideshow Full Photo Coverage: Business & Economy
Related Full Coverage
China Economy
china economy
All Full Coverage
Most Popular – Business
Viewed
Wall Street plunges again as panic spreads
Is superfood omega-3 keeping its promise?
Oil prices slump under $50 per barrel
World stocks dive as panic spreads
New strain of deadly Ebola virus discovered
View Complete List »
Search:
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Top Stories
Most Popular