Japan holds rates as S&P downgrades outlook

The Bank of Japan said although its economy is improving, inflation remains a key concern and further government intervention was needed to steer the country to recovery. The bank's board is forecasting growth of 1.3% for the 2010/11 financial year but said prices are likely to continue their downward movement. The move comes as rating agency Standard & Poor's revised downwards Japan's outlook from stable to negative owing to concerns over the country's level of debt.