The Bank of Japan will probably not raise interest rates this week because confidence at small companies has deteriorated and policymakers are still assessing the effect of the U.S. housing slump on economic growth.
BOJ Gov. Toshihiko Fukui and his colleagues will leave the benchmark overnight lending rate at 0.5 percent on Oct. 11, according to all 39 economists surveyed by Bloomberg News.
Companies with capital of ¥100 million or less account for almost half of Japan's corporate revenue. Waning investment and profit growth at small businesses and a U.S. slowdown were cited as risks by Deputy Gov. Kazumasa Iwata last week.
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