After eight consecutive months of declining prices, the Bank of Japan announced that it will implement a stimulus program to deal with its deflation crisis. The Bank announced that it would inject 10 trillion yen (US$114 bn) into the economy by offering banks cheap short-term loans.
“This must be government pressure… if they were free from pressure, they wouldn’t have done anything, because they’ve been saying their assessment hasn’t changed,” said Dariusz Kowalczyk, chief investment strategist at SJS Markets.
The Bank of Japan said the move would “firmly support Japan’s economic developments toward recovery”.
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