The Bank of Japan is planning to offer unlimited low interest loans to lenders to boost credit demand. It will offer terms of up to four years based on the overnight call rate, .1 percent. The BOJ also plans to increase its holding of REITs to 130 billion yen in 2013 over the 120 billion yen used this year. The bank also increased its asset purchase fund by 11 trillion yen to 66 trillion. The BOJ is starting to throw the kitchen sink at monetary easing.
The yen has declined by about 2 percent since the beginning of the month. The Japanese economy needs a boost and a declining yen would be helpful. The BOJ needs to match some of the strong stimulus used by the Fed , ECB, and BOE.
The yen has declined by about 2 percent since the beginning of the month. The Japanese economy needs a boost and a declining yen would be helpful. The BOJ needs to match some of the strong stimulus used by the Fed , ECB, and BOE.
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