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
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