http://www.fxstreet.com/fundamental/interest-rates/japan-boj-fears-a-return-to-deflation/http://www.fxstreet.com/fundamental/http://mediaserver.fxstreet.com/images/fxstreet-provider-logo1-en.gif7http://www.fxstreet.com/fundamental/interest-rates/japan-boj-fears-a-return-to-deflation/2009-01-22.htmlOverview: Bank of Japan (BoJ) today, as expected, left its leading O/N target rate unchanged at 0.1% in a unanimous board decision. In addition, BoJ revised its GDP forecasts sharply lower for both FY 2008 and FY 2009. Although BoJ still avoids using the D-word, it appears that it is becoming increasingly concerned about the possibility of a return to deflation in Japan. With the O/N target rate close to zero, the O/N target rate is no longer the main monetary instrument. As we stressed in ourThu, 22 Jan 2009 13:17:21 GMThttp://www.fxstreet.com/fundamental/interest-rates/danskeresearch@danskebank.com (Danske Bank A/S)http://www.fxstreet.com/fundamental/interest-rates/japan-boj-fears-a-return-to-deflation/2009-01-22.html