Faced with the reality that it could enter the recession which threatens to pull under the economies of the developed nations, Japan’s central bank set up an easing program of its own, joining the U.S. and U.K in the process.
The Bank of Japan expanded its asset purchase program by 10 trillion yen to 80 trillion. The increase is roughly $125 billion. The central banks also held its primary rate at .1%
According to MarketWatch:
In a statement announcing its decisions, the Bank of Japan said the pickup in economic activity has “come to a pause” as overseas economies moved deeper into slowdown, and that the activity was “expected to level off, more or less.”
“The bank expects that, together with the cumulative effects of earlier policy measures, today’s decision to enhance monetary easing will ensure the return of Japan’s economy to a sustainable growth path and price stability,” the central bank said.
The ¥10 trillion increase in the asset-purchase program will be split equally towards additional purchases of treasury discount bills and Japanese government bonds, the Bank of Japan said.
Douglas A. McIntyre
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
