Thursday, 15th November 2012
In General Japan News,
BoJ will inject US$138bn to boost the economy
In a bid to boost the economy, the Bank of Japan has announced that it will give the nation a US$138 billion (£87 billion) package.
This is to prevent "Japan's economy from deviating from the path of returning to a sustainable growth path with price stability", said the bank in a statement it released explaining the monetary easing.
As part of the financial stimulus, the Bank of Japan would supply new loans to banks.
The bank's forecast for the country's economic growth was reduced, with the firm previously predicting a 2.2 per cent growth. This has now been cut down to 1.5 per cent.
The Bank of Japan said it would increase its asset-purchase program by 11 trillion yen (£87 billion) to 91 trillion yen, while maintaining rates at zero to 0.1 per cent.
Japan's post-disaster resurgence is coming to a standstill, while a strong yen has also dampened demand for the country's exports.
Posted by Graham McPherson