The Bank of Japan kept interest rates unchanged and refrained from unveiling any new measures as policy makers focused on the risk that recent economic improvements will fail to translate into a sustainable recovery. Governor Masaaki Shirakawa and his colleagues held the key overnight lending rate at 0.1 % by a in sync vote, the central bank said in a statement published today in Tokyo. The Nikkei 225 Stock Average has risen 50 % from a 26 year low in March on profits  Japan is overcoming its worst postwar recession. Economists say any recovery is likely to be weak because deflation will persist and shrinking profits will force companies to cut spending and shed workers.

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