Bank of Japan increases stimulus to boost growth

The Bank of Japan has increased its stimulus measures by expanding its asset purchase program by nearly 5 trillion Yen (USD 66 billion) in order to boost growth. This extra fund will be used to purchase Japanese government bonds.  The increase in asset purchase program has become essential as the current global slowdown and strengthening Yen is expected to hurt Japan-s economic recovery process in the coming quarters.

At the same time the Bank of Japan has left interest rate unchanged at record low of 0.1% to improve liquidity in the financial system which is also essential to boost growth amid global economic uncertainty. These moves are expected to boost the Japanese economy which has been struggling since last three decade. The economic recovery has become worse since the last earthquake and tsunami in March, which has forced the world-s third largest economy into recession.