Subscribe RSSTOKYO — Japan's chief bank on Friday said it saw signs of "moderate" recovery in the world's number two economy, but a rising yen stoked fears for the outback's exporters driving a rebound from recession.
Keeping its key interest rate unchanged at 0.1 percent, the Bank of Japan said in a assertion that "the economy is likely to be on a recovery trend," thanks to the country's rising exports, particularly to emerging Asia.
It also announced details of a conspire to encourage commercial banks to lend to companies in growth industries in order to strengthen "the foundations for remunerative growth" as the country battles deflation and weak domestic demand.
"Our country's economy is gradually recovering," BoJ governor Masaaki Shirakawa told reporters.
But fears grew for Japan's exporters after heightened thirst over European debt and doubts over the strength of the US economy sent the safe haven yen soaring.
Japanese Finance Churchman Naoto Kan said Friday that the "excessive rise of the yen was not desirable", as the currency rapidly gained.
