{"id":438477,"date":"2010-03-17T02:53:29","date_gmt":"2010-03-17T06:53:29","guid":{"rendered":"http:\/\/www.businessinsider.com\/bank-of-japan-breaks-its-spine-2010-3"},"modified":"2010-03-17T02:53:29","modified_gmt":"2010-03-17T06:53:29","slug":"bank-of-japan-breaks-its-spine","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/438477","title":{"rendered":"Bank of Japan Breaks Its Spine"},"content":{"rendered":"

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Today the Bank of Japan just doubled a key bank loan program used to inject liquidity into its economy.<\/p>\n

Bloomberg:<\/a><\/p>\n

Governor Masaaki Shirakawa and his board increased the three-month loan facility to 20 trillion yen ($222 billion), the bank said in a statement after its meeting in Tokyo. Miyako Suda and Tadao Noda opposed the decision. The board also held the overnight rate at 0.1 percent by a unanimous vote.<\/p>\n

Thus Japan is loosening monetary policy while essentially the entire world is tightening. It’s appearing as if the Bank of Japan has caved the intense political pressure.<\/p>\n

Prime Minister Yukio Hatoyama’s administration, restrained from adding to fiscal stimulus by a record debt load, has been pushing the central bank to do more to bolster growth.<\/p>\n

The credit expansion “could implant a strong impression among the government that the stronger it presses, the more it can get from the BOJ,”<\/strong> said Mitsuru Saito, chief economist at Tokai Tokyo Securities Co. The expansion “is highly unlikely to shore up the macro-economy, while having only a limited impact on liquidity,” he said.<\/p>\n

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