Japan’s central bank has continued to expand emergency measures to support the country’s economy in the wake of the massive Sendai earthquake and tsunami, according to The Daily Telegraph. On Tuesday, the Bank of Japan made ¥21.8 trillion available to financial institutions to ensure that they can meet funding demands, which is an unprecedented figure and represents three times the sum offered following the collapse of Lehman Brothers in 2008.
The strong response is still short of some economists’ ideal program, with Masaaki Kanno of JPMorgan Chase saying the central bank “is missing the chance of doing something more aggressive,” adds Bloomberg. The move comes on the heels of doubling the BOJ’s asset-purchase program and record liquidity infusions, although Kanno said that accelerated purchases could “anchor investors’ sentiment.” The fiscal response comes even as power shortages and reconstruction costs could cost the country as much as ¥15 trillion.
