Friday, December 19, 2008

Japan's Central Bank Cuts Key Rate to 0.1 Percent

It's going to be massive global inflation.

The Bank of Japan's policy board voted 7-1 to cut the uncollateralized overnight call rate target from 0.3 percent. It was the second cut in less than two months.

The bank said it plans to start buying commercial paper -- the short-term debt firms use to pay everyday expenses -- in an effort to funnel cash directly to firms and will increase its purchases of government bonds to 1.4 trillion yen ($15.7 billion) per month from 1.2 trillion yen ($13.4 billion).

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