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Bank of Japan Saw Financial Lending Remain Flat
Friday, 23 January 2009 04:04:32 GMT  |  Luis Gil, DailyFX Research
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In its monthly report, the Bank of Japan stated that economic conditions have been “deteriorating significantly.” Hurt by a substantial decrease in exports, the Asian nation has seen corporate profits dwindle. As a result, fixed investment declined substantially. The bank feels that “economic conditions are likely to continue deteriorating for the time being.” Financial conditions continue to be tight and may even worsen. Indeed “funding costs for firms have been more or less flat as a whole” despite the central bank’s effort in cutting the policy rate. The report is based on data and information presented to the board during its policy meeting held on January 21 and 22, where the bank held its key rate steady at 0.10%.

USDJPY traded through 88.63 at 00:04 EST.

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