Bank of Japan holds call rates

The Bank of Japan’s Policy Board voted unanimously to hold overnight call rates at about 0.1% and announced measures to increase liquidity in Japanese markets last week.

The central bank pledged to increase its purchase of Japanese government bonds (JGBs) by ¥4.8 trillion a year (£35 billion), taking yearly purchases up from ¥16.8 trillion to ¥21.6 trillion.

The purchasing of additional government bonds echoes one aspect of the quantitative easing steps by the Bank of England.