Japan keeps interest rates level

Japan last raised interest rates in February 2007

The Bank of Japan has voted unanimously to keep interest rates unchanged at 0.5%, as widely forecast.

The decision came amid continued uncertainty over the global economy, and many analysts say Japan is unlikely to change rates for some time.

Despite inflationary pressures, recent data showed Japan was performing well with the economy expanding at an annual rate of 3.3% in the first quarter.

Japanese interest rates have stayed at 0.5% for more than a year.

Japan, the world's second largest economy, raised rates for the first time in six years in July 2006.

They were last raised in February 2007 and analysts had forecast they would rise further. However, the fallout from the US housing slowdown put such expectations on hold.

Despite recent figures indicating the economy is robust, there are fears that Japanese exports could be hit by the broader US slowdown.

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