Automotive Trade Policy Council Lauds Bank of Japan's Decision to Raise Interest Rates

WASHINGTON, Feb. 21, 2007 -- The following statement was released today by the Automotive Trade Policy Council on the Bank of Japan's decision to raise interest rates:

"The decision by the Bank of Japan to raise interest rates today from the low rates it has maintained for years is a small but welcome first step toward ending its reliance on subsidized exports from its misaligned currency.

"We encourage the Japanese government to take additional action to rebalance its misaligned currency. American businesses and workers are the victims of Japan's policy of maintaining a misaligned and undervalued yen. Growing sectors of the U.S. business community can no longer accept the closing of U.S. manufacturing facilities and loss of American jobs resulting from Japan's trade-distorting policy. With Japan's GDP growth rate now exceeding 4%, there is simply no reason for Japan to hesitate in taking bold and necessary domestic reforms, and to stop the practice of exporting its economic problems to its trading partners by undervaluing its currency."