Bank of Japan extends QE programme

The Bank of Japan has followed the Federal Reserve and European Central Bank by extending its QE programme by 10trn yen.

Similar to the Fed's move, although further asset purchasing was expected in the world's third largest economy, the size of it has surprised investors. Even Japan's finance minister Jun Azumi said the Bank of Japan "took more action than we anticipated" bringing the total stimulus programme to 80trn yen. Aimed at boosting the flagging economy, where GDP growth slowed by 0.3% in April to June, the central bank will buy bonds to keep long-term cost of borrowing down, said the BBC. Interest rates were also left unchanged between zero and 0.1%. Japan's Nikkei 225 rose 1.19% overnigh...