Bank of Japan Expands Asset Buying Plan to 80 Trillion Yen

Japan’s central bank has surprised markets by announcing an expansion of its monetary stimulus policy.

The Bank of Japan said it would increase its asset buying plan to annual pace of 80 trillion yen ($726bn; £454bn) a year, up from the previous rate of 60-70 trillion yen.

Japan’s economy is currently experiencing weak growth and inflation.

The BOJ’s move pushed the Nikkei share index up 4.8% to 16,413.76, its highest close for nearly seven years.

On the currency markets, the dollar rose 1.2% to 110.68 yen, the highest rate since January 2008.

The bank’s decision to increase its stimulus measure comes in the same week that the US Federal Reserve ended its policy of quantitative easing.

via BBC

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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