Bank of Japan reverts to zero rates

摘要

The Bank of Japan recently pledged to pump more funds into the struggling economy and keep rates virtually at zero, surprising ma.kets and stealing a march on the Federal Reserve in providing a fresh dose of economic stimulus. The yen initially fell in reaction to the Bank of Japan (BoJ) news but later reversed course to be firmer against the dollar than when BoJ news broke. For months, the central bank had eschewed government calls for more decisive action, like buying more government bonds, focusing instead on a limited funding scheme.