Financial Times FT.com

Bank of Japan spices up its debt fare

By Mure Dickie and Lindsay Whipp

Published: December 19 2008 17:15 | Last updated: December 19 2008 17:15

Nobody could ever accuse the Bank of Japan, staid warden of monetary policy for the world’s second-largest economy, of being relaxed about risk.

Even as it yesterday opened the way for direct purchases of corporate debt, much spicier fare than its standard diet of government bonds, the BoJ was at pains to stress the “exceptional” and “temporary” nature of such a policy – which would only be implemented after careful risk review.

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