Bank of Japan enlarges toolkit as inflation goal recedes
News On Japan via BusinessWeek -- Sep 20
The Bank of Japan added to its toolkit by abandoning a minimum return on bonds it purchases, a step that may ensure it meets targets for adding stimulus to the economy even as a goal of ending deflation remains out of reach.
The BOJ scrapped the requirement for regular purchases of government debt, currently set at 1.8 trillion yen ($23 billion) a month, and for notes that it accumulates under a 55 trillion yen asset-purchase fund. Policy makers also yesterday expanded the asset program by 10 trillion yen.
The central bank's move may avert repeats of failures this year at operations where the BOJ was unable to persuade bondholders to sell enough securities to meet its targets. Investors flocked to bonds as a haven as the world's third- largest economy slowed to what the BOJ termed a pause in growth, sending yields on three-year securities to 0.1 percent.
"The Bank of Japan really wanted to smooth the way for carrying out bond purchases, to make sure that asset purchases can be completed," said Shogo Fujita, chief Japanese bond strategist at Bank of America Merrill Lynch in Tokyo. "It also opened the door for negative rates."
China's television regulator has ordered a crackdown on dramas about the country's battles with Japan during and before World War Two and demanded they be more serious, state media said on Friday, following viewer complaints about ludicrous storylines. (Reuters )
Shukan Post (May 24) conveys the difficulties experienced by other parts of the adult-entertainment biz in servicing customers from the communist nation.
A deri heru (“delivery health”) call-girl tells the tabloid that she is often requested to arrive at major hotels in the Shinjuku and Ikebukuro entertainment areas of Tokyo by Chinese visitors. (Tokyo Reporter)