- ?Lv 51 decade agoFavorite Answer
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The economy of Japan, after years of steady growth and recovery from deflation during 1990s, has showed sign of decreasing pace of GDP growth. Hence, its central bank, the Bank of Japan, has announced to keep the interest rate unchanged after the bank's recent meeting.
The Bank of Japan has reasons to hold interest rate from rising as the unemployment rate has gone up more than expected. Furthermore, the recent change of Japan Prime Minister focuses more on local issues such as Education and Military, rather than international issues such as the closure of nuclear plants of North Korea.
Also, the government of Japan has implemented new measures by offering incentives to parents in order to raise its low birth rate seen in recent years.Source(s): a graduate of economics