Again after a lapse of 4 years zero interest rate policy in Japan

Bank of Japan said in a statement released the same day, to create a more relaxed financial environment, the Bank of Japan decided to implement the three measures constitute a comprehensive loose money policy: First, from now on will be the unsecured overnight inter-bank lending interest rates drop to zero to 0.1% level; second, to determine the price situation has stabilized before the zero interest rate policy has been implemented, but only in the financial aspect will not have other risks and problems; third, specific research fund created to buy assets matters, for the purchase of government bonds, corporate bonds and other financial assets to provide a common way to guarantee a fixed rate funds, fund size is 35 trillion yen.

The good news, the yen fell against the dollar to 84 to 1 level, the Nikkei stock index also rose half midday more than 100 points. To 5 at the close, the Nikkei index rose 137.70 points, to close at 9518.76 points. Tokyo Stock Exchange stock price index rose 9.90 points, to close at 832.64 points, or 1.20%.

Interest rates have been falling for two years

Since August this year, the yen surged more than this reason, the Japanese government and central banks coordinated action to prevent further yen appreciation. August 30 Bank of Japan decided, by means of an open operation to inject capital to the market size from 20 trillion yen to 30 trillion yen. September 15, the Japanese government began to intervene in currency markets, and once the yen against the dollar to 85 to 1. However, recent re-yen rose against the dollar level of 83 to 1, and high, so the Japanese government and industry urged the BOJ to take further monetary policy easing.

Since the outbreak of the financial crisis, the Bank of Japan in October 2008 will be the inter-bank unsecured overnight call interest rate cut from 0.5% to 0.3% in December and further to 0.1%, has since been maintained at this level.

Analysts judge the reason why the Bank of Japan ahead of the Fed easing policy until the implementation, in addition to the voice response industry, the main intention is to prevent the coming months, the Fed may be caused by further monetary easing appreciation pressure on the yen.

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