Bank of Japan acts to boost economy

The Bank of Japan has announced new measures to boost the economy and tackle deflation.

After an emergency meeting, the bank said it would inject 10 trillion yen ($114bn; £70bn) into the economy by offering banks cheap short-term loans.

It wants to make more money available to encourage banks to increase lending to business and individuals.

But analysts suggested it looked more like a political gesture than a real move to support the economy.

“This must be government pressure… if they were free from pressure, they wouldn’t have done anything, because they’ve been saying their assessment hasn’t changed,” said Dariusz Kowalczyk, chief investment strategist at SJS Markets.

The bank also kept interest rates unchanged at 0.1% at the meeting.

BBC News

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