The central bank unanimously voted to keep its overnight call rate target unchanged at 0.1%, but also set up a new 10 trillion yen ($120 billion) lending facility, which will accept as collateral Japanese government bonds, corporate bonds commercial paper, and deeds on loans.
"While Japan's economy is picking up, there is not yet sufficient momentum to support self-sustaining recovery in business, fixed investment and private consumption," the BOJ said in its statement, adding the recovery will likely "remain moderate" through late 2010.
The bank pledged to cooperate with the government to do all it can to pull Japan out of deflation, which the bank has said it expects to last for three fiscal years. Fighting deflation with "quantitative easing" has worked sooo well in Japan these past 20 years - that now the US is doing it... ~:-/What's that old saying about insanity being defined as repeating the same action over and over expecting a different result?Not to mention the absurdity of US futures and Euro viewing this as a good thing (as evidenced by its rise since that announcement in after hours trade).Anyone care to ask "why?" Japan is suddenly more concerned about its banks?
"While Japan's economy is picking up, there is not yet sufficient momentum to support self-sustaining recovery in business, fixed investment and private consumption," the BOJ said in its statement, adding the recovery will likely "remain moderate" through late 2010.
The bank pledged to cooperate with the government to do all it can to pull Japan out of deflation, which the bank has said it expects to last for three fiscal years. Fighting deflation with "quantitative easing" has worked sooo well in Japan these past 20 years - that now the US is doing it... ~:-/What's that old saying about insanity being defined as repeating the same action over and over expecting a different result?Not to mention the absurdity of US futures and Euro viewing this as a good thing (as evidenced by its rise since that announcement in after hours trade).Anyone care to ask "why?" Japan is suddenly more concerned about its banks?
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