Japan to Boost Stimulus Spending

Japan’s government announced that it will commit 7.2 trillion yen (US$81 billion) to direct stimulus spending as fears grow that Japan’s economy could return to deflation. An appreciating yen and continued weak demand for Japan’s exports in its largest markets in the US and Europe are expected to continue to batter Japan’s exports well into 2010.

[mserve id=”Central_Bank_BOJ.jpeg” align=”left” width=”400″ caption=”Bank of Japan” alt=”Central Bank of Japan BOJ” title=”Bank of Japan”]

“We must present an economic package promptly in order to make the economic recovery solid in the face of the current severe economic and employment situation, the yen’s rise and deflation,” the government said.

BBC News

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.