TOKYO, Sept. 17 (UPI) -- Japan's central bank Wednesday left its key interest rate unchanged at 0.5 percent, following a similar decision by the U.S. Federal Reserve.
The Bank of Japan's decision on the target rate for unsecured overnight call money came on the same day when it pumped another 2 trillion yen into its financial system in an effort to stabilize the markets roiled by the bankruptcy of the U.S. investment bank, Lehman Brothers holdings, Kyodo news service reported.
On Tuesday, it injected 2.5 trillion yen. Similar steps are being taken by central banks of major economies including the U.S. Federal Reserve and the European Central Bank.
It was the 19 straight month the BOJ held the interest rate at 0.5 percent because of Japan's sluggish economy, brought on by inflation and weak exports. The situation has led the central bank to downgrade its overall assessment of economic conditions.
But the bank expects the economy to gradually return to moderate growth as prices level out.
The bank's latest actions pushed the 225-issue Nikkei stock index higher after opening on the Tokyo stock market. Asian markets took a huge beating the previous day on the heels of the Wall Street debacle.
