The Bank of Japan has announced it is enhancing its policy of monetary easing by increasing the total loans available via the Growth-Supporting Funding Facility from 3.5 trillion yen to 5.5 trillion yen.
In addition to the substantial expansion of quantitative easing (QE) the Bank of Japan also announced, as expected, that the interest rate would remain between 0% and 0.1%.
In a statement the central bank of Japan said that whilst the global economic outlook could be better the US has recently seen some improvement and the situation in EUrope, if not improving, is no longer deteriorating.
The steps announced by the Bank of Japan are somewhat similar to those taken by the Bank of England in recent months.
The UK interest rate has been kept at its record low of 0.5% for a prolonged period, and in February the Bank of England increased its own quantitative easing programme by £50bn to £325bn.