The Bank of Japan announced an expansion of its Asset Purchase Program (quantitative easing) of 5 trillion yen, to a new total of 55 trillion yen, with the increase designated for purchase of Japanese government bonds (JGBs).

The Bank said: Some more time will be needed to confirm that price stability is in sight and due attention is needed for the risk that the economic and price outlook will further deteriorate depending on developments in global financial markets and overseas economies. While steadily implementing its decision in August to enhance monetary easing, especially through the purchase of financial assets, the Bank deemed it necessary to further enhance monetary easing so as to ensure a successful transition to a sustainable growth path with price stability.

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