Bank of Japan holds super-low rates steady

Japan's central bank on Wednesday left its key interest rate unchanged at 0.1 percent, saying the world's second largest economy "has started to pick up."

But the Bank of Japan made no mention of whether it will extend its emergency measures aimed at keeping credit flowing to struggling companies during the economic downturn. The Bank of Japan has been fighting the fallout from the global economic downturn with super-low interest rates and a scheme - due to expire at the end of this year - to buy corporate debt.

Analysts expect some of the extraordinary steps to be wound down soon as the worst of the credit crunch appears to have passed and the economy returned to positive growth in April-June, exiting a year-long recession.

AFP