Bank of Japan votes unanimously to keep overnight call rate target unchanged

TOKYO (Thomson Financial) - The Bank of Japan kept its overnight call rate target unchanged at 0.5 percent for the 13th straight meeting Tuesday, as widely expected.

This gives the Japanese central bank time to assess whether the financial market turmoil triggered by the credit crisis in the US will settle down soon, and whether weakness in the US housing market poses further material downside risk to its economy, given that the US is one of Japan's most important trading partners.

The Japanese central bank also needs to ascertain whether the Japanese economy can maintain its recovery momentum despite emerging uncertainty about domestic private demand and the appreciation of the yen.

The Bank of Japan said the nine members of its policy board voted unanimously to leave the rate unchanged.

read more:Bank of Japan votes unanimously to keep overnight call rate target unchanged