BOJ Headquarters in Tokyo, Bloomberg
Bank of Japan announced that they would be keeping the benchmark intrest rates to zero, mainly due to the slow economic recovery and sluggish growth in the production and retail demands. The rates would be near 0 percent to 0.1 percent, after a 2 day policy meeting ended, making the nikkie 225 Stock exchange surged more than 1 percent.
The bank would be making a fund of around 5 trillion yen ($60 billion) in order to buy government bonds and other assets in order to manage and get some weight behind the economy and the defalting yen, which has reached 83.66 dollars at Tokyo, hitting a 15 year hgih.
Bank of Japan did a form of Quantitative easing back in 1999 and 2001 when the economic pressures gaind momentum, thus helping the economy back on track before the financial crisis of 2007 took its toll on the global economy whipping out almost $1.4 trillion of the markets, thus leadning to a global econmic meltdown. Since then alot of work has been done by central banks in order to sheild the economy from adverse effects, such as the TARP introduced by the US in order to buy back toxic assts.