Japan augments asset purchase programme to boost economy
19 September 2012 07:19 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>Japan’s central bank announced on Wednesday about a yen (Y) 10,000bn ($127bn) increase in its assets purchase programme to about Y80,000bn, enhancing a monetary easing measure meant to boost activities in the world’s third largest economy.
The program is expected to be completed by around end-2013, according to the Bank of Japan.
“Japan's economy registered relatively high growth in the first half of 2012, supported by the firmness in domestic demand. Nonetheless, the pick-up in economic activity has come to a pause, reflecting the aforementioned developments in overseas economies,” it said in a statement.
The economy grew at an annual pace of 0.7% in the second quarter, with a quarter-on-quarter expansion of 0.2%.
Japan’s central bank established the asset purchase programme in October 2010. By end-2011, the size of the programme stood at about Y35,000bn and is expected to reach about Y65,000bn in end-2012.
“These measures in pursuit of powerful monetary easing will make financial conditions for such economic entities as firms and households even more accommodative by further encouraging a decline in longer-term market interest rates and a reduction in risk premiums,” the Bank of Japan said.
It said it expects the new measure, along with the cumulative effects of earlier policy measures, “will ensure the return of Japan's economy to a sustainable growth path with price stability.”
The Bank of Japan moves follows stimlus package announced by the US Federal Reserve on 13 September.
($1 = Y78.84)By: Pearl Bantillo +65 6780 4359
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