JAPAN

Bank of Japan Governor Vague on Discount Rate Cut: Yasushi Mieno kept up his cat-and-mouse game on the timing of a widely anticipated discount rate cut last week in an effort to protect the yen and show his independence from politicians. In the latest in a string of carefully worded statements, Mieno appeared to inch closer to admitting the need for a cut. Although his comments that he will make greater efforts to deal with the economy suggested a long-awaited rate cut may come next week, analysts were largely unimpressed. They say that a reduction in the rate from the 4.5% level has long been a foregone conclusion and that a half or three-quarters of a percentage point cut will not have much reaction in the markets nor help the sagging economy.