The Bank of Japan unexpectedly expanded its asset-purchase fund by ¥10 trillion on Wednesday, seeking to counter an increasing danger of contraction.
The program, in which the BOJ buys mainly government bonds, was enlarged to ¥55 trillion in a unanimous decision by the Policy Board. A separate fund that extends credit to banks was held at ¥25 trillion.
Stocks in Tokyo jumped and the yen fell after the decision, which was forecast by only five of 21 analysts surveyed by Bloomberg News. With the move, the BOJ joined counterparts from the U.S. Federal Reserve to the European Central Bank in taking steps to address risks to growth five years after the U.S. mortgage meltdown derailed the global economy.
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