Japan Cuts rates and considers quantitative easing.

The Policy Board of the Bank of Japan has unanimously decided that they will decrease the nation’s interest rate from 0.1% to between 0% and 0.1%, and they will retain this interest rate until price stability is in sight. In addition, they are contemplating the possibility of a quantitative easing programme worth around Y5,000bn.  Due to the lowering of the interest rates there will be a monetary stimulus to the Japanese economy. This idea was also suggested by Adam Posen, member of the Monetary Policy Committee (MPC), to help ensure the economic recovery in the UK.

Martijn Bauters.

Original article:
http://www.bankingtimes.co.uk/2010/10/05/japan-cuts-rates-and-considers-quantitative-easing/