The bank has announced that it will increase its purchase of government bonds by 50 trillion yen ($520 billion), a figure that is equivalent to approximately ten percent of Japan’s annual gross domestic product.
Japan's economy has been hurt by a variety of factors, not least decades of deflation or falling prices. Falling prices discourage people from spending and companies from investing, and that has trapped Japan in a cycle of what analysts have described as sluggish growth and recession.
These same analysts believe that given the slowdown in Japan's export sector in recent years, reviving domestic demand has become ever more crucial to spurring a fresh wave of economic growth in the country.
