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Bank Of Japan Cuts Rates To As Low As Zero Percent, Also Going To Buy Govt Bonds

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In a surprise move, Japan’s central bank lowered its benchmark interest rate to a range of 0 percent to 0.1 percent Tuesday, a tiny change from its previous target of 0.1 percent but a symbolic slide into an age of zero interest rates.

The Bank of Japan also said it would set up a temporary 5 trillion yen, or $60 billion, fund to buy Japanese government bonds, commercial paper and other asset-backed securities amid concerns over weakening growth in the world’s third-largest economy.

With the interest rate cut, the central bank effectively reintroduces a zero-interest rate policy for the first time since July 2006. The decision underscores concerns that a strong yen and persistent deflation threaten the country’s fragile economic recovery.

The dollar rose against the yen on the announcement, climbing 0.7 percent on the day to 83.90 yen from about 83.55 yen before the decision.

This policy has worked so well in the past it really can't possible fail.

If anyone calls this insane I'll have their heads....

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I liked Bill Bonner's version of currency wars- like sending your army out to fight and then shooting them in the back. :lol:

Maybe if they could stop funnelling all the available cash to the already rich and spread it around a bit more evenly we might see a pick up in demand, rather than chasing each other ever more franticly to the bottom of the currency heap.

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  • 433 Brexit, House prices and Summer 2020

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      • down 5% +
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