BOJ and Fed did it again Fed hold off the interest rate increase as expected thus market gain this afternoon, however Japan’s central bank opted Thursday not to expand its massive stimulus policies to boost growth, apart from channeling extra support for financing disaster recovery efforts on the earthquake-stricken southern island of Kyushu. Japanese market down 645 points or 3.7% The Bank of Japan said it would provide up to 300 billion yen ($2.75 billion) in zero-interest rate loans to financial institutions in the disaster-affected areas.
But it left other aspects of its asset purchases and interest rate policies intact.
The announcement followed news that factory output rose in March while core inflation and consumer spending fell, underscoring a lack of confidence among households whose buying power remains the key to sustained growth.
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