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Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

BOJ ends zero-interest policy

The Bank of Japan on July 14 ended the zero-interest-rate policy implemented since March 2001, lifting the rate overnight to 0.25 percent.

Japanese Communist Party Policy Commission Chair Koike Akira published a statement on the BOJ decision, saying, "It is a matter of course for the BOJ to lift such an aberrant ultra-low interest rate policy unprecedented in the world."

Koike criticized the ultra-low interest rate policy for damaging the county's economy and finance by saying, "Under the ultra-low interest policy and the zero-interest rate policy, the BOJ has siphoned more than 300 trillion yen in interest income from the public while the abundant money has been poured into such money games as stocks and speculation."

At the same time, Koike stressed that unless private demand rises, Japan's economy will not fully revive, and pointed out that steps required to that end are not only lifting the zero-interest rate policy but also shifting from Prime Minister Koizumi Jun'ichiro's "structural reform" policy that cools private demand.

Concerning the recent revelation that BOJ Governor Fukui Toshihiko and key players in the Koizumi politics, including Orix Corporation Chairman Miyauchi Yoshihiko, have been deeply involved in the money games, Koike said, "The JCP will demand that Fukui resign as the BOJ governor and will focus on uncovering the whole picture of corruption."
- Akahata, July 15, 2006