Banking, finance, and taxes

Bank of Japan Adds More Stimulus to Fight Deflation, When No One Cares

Jon Ogg
More global quantitative easing is happening. Unfortunately, it is coming on a day when the U.S. markets are closed so the news may fall on deaf ears in America. Elsewhere the reaction was muted. The Bank of Japan is throwing in more stimulus and more quantitative easing measures. This is the second month in a row. The central bank voted to boost asset purchases by some 91 trillion yen from 80 trillion yen, and it is planning a new lending facility in order to increase its bank loans to the tune of 25 trillion yen.

Today’s increases were as follows:

  • Japanese government bonds with coupons, about 39 trillion yen
  • Treasury discount bills about 19.5 trillion yen
  • Commercial paper about 2.2 trillion yen
  • Corporate bonds about 3.2 trillion yen
  • Beneficiary interest in index-linked exchange-traded funds about 2.1 trillion yen
  • Investment equity issued by real estate investment corporations about 0.13 trillion yen.

Japan is aiming its fight at deflation. The bank said, “The Government and the Bank share the recognition that the critical challenge for Japan’s economy is to overcome deflation as early as possible and to return to a sustainable growth path with price stability.” It also said, “The Government strongly expects the Bank to continue powerful easing as outlined in section 2 until deflation is overcome.”

We already have looked around at the reactions to the easing. It seems that no one cares, and those that did care seemed to be disappointed, wanting more. The total came to about $138 billion or so. Unfortunately, $138 billion just is not quite what it used to be.

JON C. OGG

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.