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Fri 11 Nov 2009Japan keeps rates near zero

The Bank of Japan kept interest rates near zero and raised its economic assessment even as government pressure for it to fight deflation intensified.

Governor Masaaki Shirakawa and his colleagues held the overnight lending rate at 0.1 per cent, the central bank said in a statement today in Tokyo. The release came hours after Deputy prime minister Naoto Kan warned about the danger that falling prices pose to Japan's recovery from its worst postwar slump.

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