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Business
Taking a Whack at the High Yen
Monday, August 30, 2010
Whack
Tokyo -- Japanese officials took a whack the appreciating yen today, but it seems unlikely that the measures will have their intended effect.
The Bank of Japan (BOJ) policy board will offer domestic financial institutions an additional 10 trillion yen (about US$119 billion) of six-month loans. Meanwhile, the Kan administration also announced that it would offer a new stimulus package for the economy worth 920 billion yen (about US$11 billion).
The immediate market reaction to these announcements, however, was far from dramatic, as many economists feel that the measures are too modest and unlikely to have much effect on the overall position of the Japanese economy.
Indeed, some analysts suggest that this is mostly a case of the government trying to show its own public that it is "doing something" about the economic downturn rather than a convincing intervention that might turn around the Japanese economy.
PanOrient News
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