"The BOJ has unveiled similar lending facilities in the past, but they have never been effective in stimulating borrowing demand"
- Hideo Kumano, chief economist at Dai- ichi Life Research Institute and a former BOJ official
The Bank of Japan enhanced its asset-purchase programme on Tuesday, as the economic recovery may run out of steam in the nearest future. The stimulus programme was extended by 11 trillion yen to a total of 66 trillion yen, while the credit-loan programme remained unchanged at 25 trillion yen. The central bank has eased its policy for the second consecutive month, as the 1 per cent inflation target is likely to be missed.
"The easing hasn't ended," said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management. "It's possible that the BOJ will next ease around January."
"The BOJ has unveiled similar lending facilities in the past, but they have never been effective in stimulating borrowing demand," said Hideo Kumano, chief economist at Dai- ichi Life Research Institute and a former BOJ official. "The new loan program will probably have little impact."
The Nikkei 225 Stock Average soared 1.09% per cent, or 96.23 points, to 8,938.21. The broader Topix Index jumped 1.29% per cent, or 9.48 points, to 742.94.
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