Japan: Japan increases stimulus
April 27, 2012
At its 27 April monetary policy meeting, the Bank of Japan (BoJ) decided unanimously to increase the total size of the Asset Purchase Program by about JPY 5 trillion (USD 61.8 billion), to reach JPY 70 trillion (USD 866 billion). Simultaneously, the Bank changed the composition of the program by boosting government bond purchases from JPY 19 trillion to JPY 29 trillion, while reducing six-month market operations by JPY 5 trillion. This move is consistent with the Bank's intentions to achieve an inflation goal of an annual 1% for the time being and also to support economic growth amidst a still uncertain global outlook. In a separate decision, the Bank also decided to leave the collateralized overnight call rate unchanged at around 0 to 0.1%, which was widely expected by the market.