Central Banking

Japan greets S&P cut with disdain and delight

Japan's loss of its top-notch credit rating caused indignation among politicians on Feb 23, 2001, but the central bank and financial markets welcomed it as a wake-up call for the government to mend its free-spending ways.

The downgrade by Standard and Poor's rating agency was a fresh body blow to Prime Minister Yoshiro Mori, who is widely expected to step down soon following a string of gaffes and policy fumbles that have sapped his credibility.

Citing soaring debt levels in the world's second

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