OECD and BOJ Member push for Bond Purchases

Today the OECD suggested that  the Bank of Japan should maintain its policy of buying corporate bonds and to continue its quantitative easing measures to fight deflation. BoJ member Seiji Nakamura echoed the sentiment in his statement and called for “extraordinary” policies to be implemented to strengthen Japan’s corporations during the current crisis.

The current lending rate is 0.10% modified last December which doesn’t leave much room for the the Central Bank to issue Monetary Policy via rates and looks to other instruments like bond purchases and adding funds to the banking sector.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza