The Bank of Japan eased monetary policy further, increasing its financial asset purchase program by 11 trillion yen (about 107 billion euros) to 91 trillion yen (888 billion euros) (bonds, ETFs, government bonds and trade notes). This is the second measure of its kind after a similar move in September, aimed at fighting deflation and supporting the economy on the brink of recession.
Japanese Economy Minister Seiji Maehara described the steps taken by the Boj as "unprecedented", which also set up a special instrument to stimulate bank financing. The last time the Bank of Japan eased its monetary policy for two consecutive months was in May 2003.
Analysts point to several elements behind today's decision, starting with a fifth consecutive monthly decline in the consumer price index, while markets for index-linked bonds suggest that inflation will remain below the 1% target even in 2017.
