BOJ Bolsters Asset Purchase Program Amid Downgraded Economic Outlook

The Bank of Japan has joined the European Central Bank and the Federal Reserve in taking non-traditional measures to address economic concerns. In a move that was widely anticipated, the BOJ increased its asset purchase program by JPY10 trillion to JPY80 trillion, with new purchases equally divided between bonds and bills. This decision was justified by the BOJ's downgrading of its assessment of the economy.

The bank also scrapped the 0.1% minimum bid for rinban operations, a move that will allow it to purchase more bonds without restrictions. Additionally, the program has been extended from the middle to the end of next year.