JAPAN'S central bank has expanded a government bond-buying program, acting to spur growth following news of a further decline in industrial production.
The Bank of Japan's policy board voted unanimously on Tuesday to increase the asset purchasing program by Y11 trillion ($A134.14 billion) to Y91 trillion.
The central bank decided against any change in its key interest rate, which remains at 0 per cent to 0.1 per cent.
The bond-buying program is intended to encourage borrowing and spending and help make Japan's exports more competitive.
A fresh barrage of negative data on Japan's failing recovery pumped up pressure for the central bank to act to help revive the world's third-largest economy.
Japan's industrial output contracted by 4.1 per cent in September from August and 8.1 per cent from a year earlier as automakers and steel mills cut production due to shrinking demand and antagonisms with China, according to the Ministry of Economy, Trade and Industry.
The economic recovery that followed Japan's March 2011 disasters has been doused by slowing global growth. Flaring tensions with China over disputed islands in the East China Sea have further crimped demand, especially for big-ticket items like cars. Slowing growth in China, meanwhile, has hit demand for industrial inputs like steel and machinery.
"Industrial production is on a downward trend," the ministry said, forecasting a further decline in October, followed by a rebound in November.
Embattled Prime Minister Yoshihiko Noda convened an extraordinary session of the legislature on Monday, appealing to the opposition Liberal Democratic Party to cooperate in passing a bill authorising bond sales to finance the growing deficit.
Japan's Cabinet approved a Y423 billion ($A5.16 billion) emergency stimulus package on Friday, double the size originally expected. The government was obliged to dip into reserves to pay for the new stimulus, since its leeway to boost spending is limited by a legislative standoff preventing issuance of some $US38.3 trillion ($A37.24 trillion) in deficit financing.
As it confronts that "fiscal cliff," which could raise the country's borrowing costs, Japan already leads industrial nations with government debt amounting to more than twice the country's gross domestic product.
"We still have work to do," Noda said on Monday in a speech that repeatedly reminded MPs of their responsibility toward future generations. He warned that funding shortfalls threaten to affect crucial government services.
Noda's Democratic Party of Japan is struggling as the Liberal Democrats gain in power. He was obliged to present his policy speech Monday in the House of Representatives after the LDP, which controls the upper house of the parliament, blocked him from delivering the speech in that chamber.
Apart from the political mess, exports, usually a bright spot for Japan's economy, are faltering as the prolonged crisis in Europe crimps demand. Another problem is the persistent strength of the yen, which makes products made in Japan relatively more expensive in overseas markets.
Shipments of passenger cars dropped 12.6 per cent in September from August and 13.2 per cent from a year earlier, METI reported. Shipments of virtually all other products also fell.
Jobless rate figures for September likewise offered little encouragement, as the government reported the seasonally adjusted unemployment rate was 4.2 per cent in September, unchanged from August.
The ratio of job offers to seekers fell to 0.81 from 0.83 in August, meaning there were 81 jobs for every 100 job seekers.
Anda sedang membaca artikel tentang
Bank of Japan lays out further stimulus
Dengan url
http://writerlovery.blogspot.com/2012/10/bank-of-japan-lays-out-further-stimulus.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Bank of Japan lays out further stimulus
namun jangan lupa untuk meletakkan link
Bank of Japan lays out further stimulus
sebagai sumbernya
0 komentar:
Posting Komentar