Tuesday, August 31, 2010

Bank of Japan holds emergency meeting

A security guard is seen through a link in a chain fence outside the
Bank of Japan building in Tokyo

Source: Press TV

The Bank of Japan is holding an emergency meeting to decide on easing monetary policy in an effort to curb a surging yen amid mounting political pressure.

"Today... the chairman of the Policy Board decided to call an unscheduled monetary policy meeting," Japan's central bank said in a statement on Monday.

The strength of the Japanese currency has battered the country's already fragile economy as political pressure is mounting on the bank to ease its monetary policy.

The news sent Japanese stocks soaring, with the Nikkei 225 stock average rising by 3.1 percent to stand at 9,265.39 points.

The government usually doesn't intervene in foreign exchange markets, but Japanese Prime Minister Naoto Kan has warned that Tokyo will take decisive action when necessary.

Kan's economic team is expected to hold another meeting on Monday to decide the basic thrust of steps to help the fragile economy.

The rise in the yen has hurt Japan's export-driven economy, making Japanese products more expensive aboard.

It is also threatening to delay the country's exit from deflation. The yen hit a fresh 15-year high against the dollar last week.

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