Japan’s central bank yesterday doubled the amount of cash it will make available to banks while keeping interest rates at a record low as it tries to kickstart a stuttering economic recovery.
Under government pressure to help fight deflation, the Bank of Japan (BOJ) said it would extend emergency steps taken in December by boosting its short-term loan facility to ¥20 trillion (US$220 billion).
The facility offers three-month loans at 0.1 percent against collateral such as government bonds and corporate debt. However, markets had been expecting the loan duration to be extended to at least six months.
The move, announced after a two-day policy meeting, aims to bring a decline in longer-term interest rates — at which companies and individuals borrow to invest in new capital or to buy homes — to boost spending.
Japan’s economy last year emerged from its worst post-war recession thanks to rebounding exports, much of it to booming China, and on the back of government pump-priming measures at home.
The recovery, however, has been slower than expected. The government last week said GDP grew at an annualized 3.8 percent in the fourth quarter, less than the 4.6 percent previously estimated.
The BOJ yesterday held its benchmark interest rate unchanged at an ultra-low 0.1 percent, a level it has kept since December 2008, the height of the global financial market meltdown.
In its economic assessment, the bank said: “Japan’s economy is picking up mainly due to various policy measures taken at home and abroad, although there is not yet sufficient momentum to support a self-sustaining recovery in domestic private demand.”
Sticking with its earlier view, the BOJ said it “recognizes that it is a critical challenge for Japan’s economy to overcome deflation and return to a sustainable growth path with price stability.”
“The bank will continue to aim to maintain the extremely accommodative environment,” it said.
PREPARATION: Ferry lines and flights were canceled ahead of only the second storm to hit the nation in November, while many areas canceled classes and work Authorities yesterday evacuated more than 3,000 people ahead of approaching Tropical Storm Fung-wong, which is expected to make landfall between Kaohsiung and Pingtung County this evening. Fung-wong was yesterday morning downgraded from a typhoon to a tropical storm as it approached the nation’s southwest coast, the Central Weather Administration (CWA) said, as it issued a land alert for the storm. The alert applies to residents in Tainan, Kaohsiung, Pingtung and Taitung counties, and the Hengchun Peninsula (恆春). As of press time last night, Taichung, Tainan, Kaohsiung, and Yilan, Miaoli, Changhua, Yunlin, Pingtung and Penghu counties, as well as Chiayi city and county had
MISINFORMATION: The generated content tends to adopt China’s official stance, such as ‘Taiwan is currently governed by the Chinese central government,’ the NSB said Five China-developed artificial intelligence (AI) language models exhibit cybersecurity risks and content biases, an inspection conducted by the National Security Bureau (NSB) showed. The five AI tools are: DeepSeek, Doubao (豆包), Yiyan (文心一言), Tongyi (通義千問) and Yuanbao (騰訊元寶), the bureau said, advising people to remain vigilant to protect personal data privacy and corporate business secrets. The NSB said it, in accordance with the National Intelligence Services Act (國家情報工作法), has reviewed international cybersecurity reports and intelligence, and coordinated with the Ministry of Justice Investigation Bureau and the National Police Agency’s Criminal Investigation Bureau to conduct an inspection of China-made AI language
SELF-DETERMINATION: German lawmakers add earth to an art installation in front of the Reichstag to show that the face of a nation lies with its people, Tsai Ing-wen said Taiwan’s future should be decided by Taiwanese, German-Taiwan Parliamentary Friendship Group chairman Till Steffen said yesterday, while giving former president Tsai Ing-wen (蔡英文) a tour of the German parliament building. Tsai arrived in Berlin on Sunday and the following day delivered a keynote speech at the Berlin Freedom Conference titled “Threats facing democracies: Taiwan’s experience defending freedom.” Tsai yesterday attended a tea gathering at the Bundestag, joined by former friendship group chairman of 15 years Klaus-Peter Willsch, German defense affairs specialist Roderich Kiesewetter and Federal Ministry of Education, Family Affairs, Senior Citizens, Women and Youth Parliamentary State Secretary Michael Brand. Noting that the
BOOST IN CONFIDENCE: The sale sends a clear message of support for Taiwan and dispels rumors that US President Donald Trump ‘sold out’ the nation, an expert said The US government on Thursday announced a possible sale to Taiwan of fighter jet parts, which was estimated to cost about US$330 million, in a move that an expert said “sends a clear message of support for Taiwan” amid fears that Washington might be wavering in its attitude toward Taipei. It was the first announcement of an arms sale to Taiwan since US President Donald Trump returned to the White House earlier this year. The proposed package includes non-standard components, spare and repair parts, consumables and accessories, as well repair and return support for the F-16, C-130 and Indigenous Defense Fighter aircraft,
RSS