Shirakawa hints at further cut, says CP purchase 'extremely unusual'+

TOKYO, Dec. 19 Kyodo -
Bank of Japan Governor Masaaki Shirakawa indicated Friday that the central
bank, after cutting its key interest rate to 0.1 percent, could trim the rate
even further.
''I cannot say there will be absolutely no more (cuts),'' Shirakawa said in a
press conference after the BOJ announced a reduction in its key rate from 0.3
percent.
He also said the bank's decision to introduce the outright purchase of
commercial paper as a way to facilitate corporate financing was ''extremely
unusual'' for a central bank.
The decision, which makes the BOJ take corporate credit risk, is ''grave'' and
one of ''the most abnormal decisions of all abnormal decisions'' that can be
made by a central bank, he said.
Shirakawa confirmed that the recent surge in the value of the yen was among the
factors considered by the BOJ in making the latest monetary policy decision.
==Kyodo
2008-12-20 00:00:29