Japan does not expand its bailout in response to US
The Bank of Japan has decided not to increase its measures to inflate the Japanese economy in response to the US decision to pump a further $600 billion into its economy this week.
However, the central bank is proceeding with unusual plans to buy shares in exchange traded funds and real estate investment trusts as part of a 5 trillion yen asset buying scheme starting next week.
Maintaining interest rates at an ultra-low level of between 0% and 0.1% the central bank painted a downbeat picture of Japan’s economy.
‘Japan's economy still shows signs of a moderate recovery, but the recovery seems to be pausing. Exports and production have recently been more or less flat,’ it said.
‘Business fixed investment is showing signs of picking up. The employment and income situation has remained severe, but the degree of severity has eased somewhat,’ it added.