BOJ Follows Fed to Bolster Stimulus as Growth Falters
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The Bank of Japan unexpectedly expanded its asset-purchase fund by 10 trillion yen ($126 billion), seeking to counter an increasing danger of contraction in the world’s third-largest economy.
The BOJ’s program, in which it buys mainly government debt, or JGBs, was enlarged to 55 trillion yen, the bank said in Tokyo. A credit facility for lenders stayed at 25 trillion yen. The bank abandoned minimum yields for 1.8 trillion yen in monthly government-bond purchases conducted separately from the stimulus fund, opening the door to the potential for negative interest rates.