At a surprise policy board meeting on Tuesday, the Bank of Japan announced it would offer up to Y10,000bn ($115bn, €77bn, £70bn) in cheap, three-month loans to commercial banks, an easing of monetary policy it said would “firmly support“ the recovery of the world's second-largest economy.
However, the attempt to boost financial sector liquidity disappointed markets and was dismissed by critics as little more than a sideshow intended to head off calls from members of the new Democratic party-led government for more decisive action to curb deflation and boost economic growth.
