THE BANK of Japan has kicked off its aggressive monetary easing, announcing a purchase of ¥1.2 trillion (£7.95bn) of long-term Japanese government bonds that sent the value of the yen sliding in early trading.
The bank’s governor, Haruhiko Kuroda, this morning said it would purchase ¥1 trillion of five to 10 year bonds and another ¥200bn with maturities more than 10 years.
The news sent the value of the yen against the dollar sliding to hit lows not seen since 2009, but the news boosted Japanese stocks. The Nikkei index rose around three per cent despite the impact of gloomy US jobs news on Friday, with the FTSE 100 and European markets set to follow.
Under recently elected Prime Minister Shinzo Abe, the Bank of Japan has pledged a radical injection of money into the economy.