Bank of Japan injects £70bn in bid to tackle deflation

It will inject 10trn yen (£70bn) into the economy by means of offering banks cheap short-term loans to encourage lending to business and individuals. Interest rates remained unchanged at 0.1% and the Bank says the measures will "firmly support Japan's economic developments toward recovery". The Japanese government, which announced last month the country was in a "mild deflationary situation", welcomed the move, but analysts claim the amount of extra liquidity is negligible and argue the Bank's move was an attempt to take advantage of the "announcement effect". A rise in the value o...