(24 September 2012 – Japan) The Bank of Japan has announced a US$128 billion (A$122 billion) stimulus, extending its asset-purchasing scheme to boost the slowing economy.The central bank warned ‘. . . the pick-up in economic activity has come to a pause’ in Japan due to the slowing overseas economies.
‘There remains a high degree of uncertainty about the global economy, including the prospects for the European debt problem and the momentum toward recovery for the United States economy.’
The move will increase the bank’s asset-buying program to US$1 trillion. The program is the main tool for monetary easing that provides liquidity to markets as the central bank purchases government and corporate bonds and commercial paper.
Finance Minister Jun Azumi welcomed the central bank’s decision, saying that the bank ‘took more action than we anticipated’ and it would help to support the economy.