BOJ optimistic about Japanese recovery

TOKYO, Sept. 19 (UPI) -- Bank of Japan Gov. Toshihiko Fukui said Wednesday Japan’s economic recovery is expected to continue with prices staying stable.

Speaking after his central bank left the short-term interest rate unchanged, Fukui said uncertainty about the global economy is rising because of the U.S. subprime mortgage crisis, Kyodo news service reported.

The U.S. Federal Reserve slashed its fed funds rate by a half percentage point Tuesday to tackle the crisis.

''The Japanese economy is expected to remain on a sustained recovery path with price stability,'' Fukui was quoted as saying, adding his bank will closely monitor economies around the world.

Commenting on current global market conditions compared to a month ago, the bank chief said, “Few notable improvements have been seen, though they are not deteriorating either.''