Central Bank to increase bond purchases by 50%

JAPAN - The Bank of Japan announced today it will increase bond purchases by 50%, adding 1 trillion yen (8.1 billion dollars) to the banking system.

The move breaks a policymaking impasse between the country's monetary authority and the government and focuses expectations on Prime Minister Junichiro Koizumi's proposed structural reformmeasures.

The Nikkei rose 3.8% on the news, reacting to the policy significance, rather than the increased banking system liquidity. The move comes amid the

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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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