Bank of Japan keeps key rate steady

TOKYO, Nov. 13 (UPI) -- Japan's central bank kept its key short-term interest rate unchanged at 0.5 percent Tuesday amid growing concerns about U.S. economic growth.

The Bank of Japan's 8-1 policy board vote marked the fifth time the vote wasn't unanimous.

Board member Atsushi Mizuno, a fixed-income strategist with Credit Suisse First Boston Securities (Japan) Ltd., was the dissenting vote, the bank said.

A downturn in U.S. private consumption and capital investment, stemming from the U.S. housing slump and subprime mortgage financial crisis, would hurt the Japanese economy and cause the global economy to "deteriorate," bank Gov. Toshihiko Fukui said.

Japanese stocks fell after the announcement, with Tokyo's benchmark Nikkei 225 stock index dropping 70.46 points, or 0.46 percent, to 15,126.63 points, its lowest close since July 2006.

The yen strengthened, trading at 110.13 yen against the U.S. dollar from 110.10 yen before the announcement and 109.67 yen late Monday.