Bank of Japan (BoJ) in aggressive growth move

Editorial Team
Editorial Team
BoJ in aggressive growth move

The Bank of Japan has said it will expand the country’s money supply, as it tries to stimulate growth in the world’s third-largest economy.

The central bank said it would boost its asset purchases, including Japanese government bonds, while pledging to meet a two percent inflation target within two years, aimed at reversing decades of falling prices.

The BoJ said it would “enter a new phase of monetary easing both in terms of quantity and quality”.

Among its purchases would be exchange-traded funds and longer-term bonds, with the latter aimed at pushing down long-term interest rates to encourage companies and individuals to borrow.

Japan’s economy has been battling more than a decade of falling prices.

New governor Haruhiko Kuroda had previously said he would do “whatever it takes” to drive growth.

“The BOJ will conduct money-market operations so that the monetary base will increase at an annual pace of about 60 trillion yen to 70 trillion yen,” the central bank said in a statement.

Image: © Getty

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The Editorial team at APAC Outlook Magazine is a team of professional in-house editors led by Jack Salter, Head of Editorial at Outlook Publishing.