Defiant japan on an 'even keel'

The Bank of Japan has unanimously voted to hold interest rates at 0.5% - a figure the bank has maintained for over a year now...
 
Despite inflationary pressures, recent data showed Japan was performing well with the economy expanding at an annual rate of 3.3% in the first quarter.

The decision came amid continued uncertainty over the global economy, and many analysts say Japan is unlikely to Change rates for some time.

Japan, the world's second largest economy, raised rates for the first time in six years in July 2006.  They were last raised in February 2007 and analysts had forecast they would rise further.

However, the fallout from the US housing slowdown put such expectations on hold. Despite recent figures indicating the economy is robust, there are fears that Japanese exports could be hit by the broader US slowdown.