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Japan to Delay Rate Cut
World Economy

Japan to Delay Rate Cut

The Bank of Japan is set to hold off cutting interest rates at next week’s rate review, sources say, as it scrambles to soothe market jitters caused by January’s surprise decision to adopt negative interest rates, Reuters reported. Markets are rife with speculation the BOJ will expand monetary stimulus in coming months to reflate a stagnant economy, after January’s move failed to boost stock prices or arrest an unwelcome rise in the yen. But many central bank policymakers are reluctant to ease again soon unless external shocks jolt global financial markets enough to derail Japan’s fragile economic recovery.

 

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