Reuters) – The Bank of Japan cut interest rates on Tuesday and pledged to keep rates at zero until prices are seen stable in a surprise move showing its concern that a strong yen and slowing growth are undermining a fragile economic recovery.
The central bank also decided to set up, as a temporary measure, a 35 trillion yen ($419 billion) pool of funds to buy or accept as collateral assets such as government bonds, commercial paper and asset-backed securities.
The decision to cut interest rates was made by a unanimous vote,
But board member Miyako Suda opposed including government bonds among the type of assets the BOJ could buy using its pool of funds.
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.