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Bank of Japan increases QE by 10 trillion yen

The Bank of Japan’s Policy Board has announced that it is to increase the scale of its asset purchase programme by around 10 trillion yen, taking it from 40 trillion yen to approximately 50 trillion yen.

The Policy Board also announced that it was leaving unchanged the Japanese interest rate at between 0% and 0.1%.

Japan’s economy continues to recover steadily in the aftermath of the earthquake that struck the country earlier this year.

However, the Bank of Japan has warned of high uncertainty in the future regarding the global economy, as the US grapples with its debt ceiling and the sovereign debt crisis in the eurozone refuses to die down.

The Policy Board cited the need to help the economy shift from a path of recovery to growth as the primary reason for the extra loosening of monetary policy enacted by increasing the asset purchase programme by 10 trillion yen.

In the United Kingdom the Bank of England decided to leave both interest rates and its own quantitative easing asset purchase programme unchanged, at 0.5% and £200bn.

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