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"We want to reduce the interest rate further.
"The BoJ will cut the interest rate further into negative territory if judged as necessary," it said in a statement.
The growing supply of capital was met with falling demand for capital, pushing down the natural interest rate further.
Treasury Prices Drop (By Bloomberg News Treasuryy bond prices fell yesterday on expectations that rising consumer confidence and faster growth would discourage the Federal Reserve from lowering its key interest rate further, enhancing demand for mortgage-backed debt securities.
The news cemented market expectations that the ECB would use its meeting next week to inject fresh cash into the single currency bloc and to cut a key interest rate further into negative territory.
The president of the central bank, Jean-Claude Trichet, reiterated Thursday that policy makers were ready to raise the benchmark interest rate further to fight inflation threats even as governments struggle to contain Greece's worsening debt crisis.
Similar(51)
The Fed needs to cut interest rates further.
That could drive up interest rates further if growth continues.
If the Federal Reserve agrees, these economists worried, it may be discouraged from lowering interest rates further.
The Fed aggressively eased interest rates further in an emergency move Tuesday.
Adverse shifts in the stock market and interest rates further weakened the schemes.
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