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Friday, October 16, 2009

Finance Minister Hirohisa Fujii made the remarks last week


The BOJ had been expected to say when it would begin withdrawing measures such as buying corporate bonds and offering low-interest loans.
It upgraded its view of the economy, saying it "had started to pick up".
There has been some pressure from the government to keep the stimulus going because the economy is still unstable.
'Too risky'
Finance Minister Hirohisa Fujii made the remarks last week, although he later stressed that it was up to the BOJ to decide what to do.
Comments from ministers "revealed the gap in views between the government and the Bank of Japan on corporate financing conditions," said Hirokato Kusaba, senior economist at Mizuho Research Institute.
"After that, the BOJ probably judged it was too risky to announce an end to corporate fund support now."
The current strength of the yen against the US dollar may also have encouraged the BOJ to delay its decision.
The stimulus measures had been expected to start being wound down at the end of the year, but some analysts have said they could now continue until March.

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