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The secret behind Bank of Japan decision
Paula Kashyap
Mar. 9, 2006
They are concerned about economy and not inflation at this time. The central bank has removed some liquidity but kept the rates intact.Bank of japan decided to remove some liquidity but keep interest rates intact.The central bank will cut the amount of cash provided to lenders to the level at which commercial banks are legally required to hold at the central bank, currently 6 trillion yen, from as much 35 trillion yen. Softer than perceived strength in economy led to Bank of Japan decision.
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