Government of Japan will be ready end of this month outline new economic stimulus plan, instead of previous plans early in September

Sustained appreciation of the yen caused Japan’s stock market decline threat from direct intervention in market speculation on the temperature. According to Japanese media reports, the Japanese government will be ready before the end of the new economic stimulus package outline economic stimulus plan in the new government called the Bank of Japan to further ease monetary policy to address the rally in the yen. Market expectations, to prevent deflation, the central bank or United States and Japan opened a new round of quantitative easing policy of the curtain.

Published ahead of Japan’s stimulus plan, or

Ye Tian Jiayan Japanese Finance Minister has hinted, will be necessary to formulate responses to the central bank together. Japan’s Vice Finance Minister Ikeda element for a long time yesterday it clear that the rapid appreciation of the yen is not conducive to the economic, the Bank of Japan should take prompt measures to support the economy, the Bank of Japan expressed its hope that further relaxation of monetary policy in the near term view.

Learned that the Japanese government will be ready for the end of the outline of a new economic stimulus plan, instead of previous plans early in September. As part of the new economic stimulus plan, the Japanese government has requested the central bank to further relax monetary policy. Sources pointed out that the Bank of Japan is considering the 6 to 7 September or early decision to hold interest rate meetings to further relax monetary policy, the Bank of Japan may continue to “open a new operation” to the market interest rate of 0.1% of funds, and injection size from the current 20 trillion yen to 30 trillion yen, the period from 3 months to 6 months.

Government and central bank intervention in currency markets is expected soon, the Japanese stock market finally stopped the decline, the Nikkei 225 index closed at 8906.48 points yesterday, up 0.69%. In addition, driven by good corporate results, European markets also closed higher yesterday to open.

Deflation became enemies of the American economy

However, the market for the Japanese government and central bank intervention in foreign exchange effects skeptical. Analysts said that if the years of Japan’s deflation and inflation of its trading partners into account, the current yen exchange rate is still high than 15 years ago, 28% lower. Thus, a strong yen is only superficial, deflation is the key issue facing the Japanese economy.

This year in June, U.S. CPI to 0.1 percent monthly rate, decreased, rebounded 0.3 percent in July, but the basic inflation rate is almost no growth. In addition, the United States in July durable goods orders weaker than expected monthly rate, at the same time, old house in July new home sales worse than expected, the data showed the U.S. economy faces the risk of deflation.

Quantitative easing US-Japan or pull the curtain

In Japan the central bank to further relax monetary policy, Fed policy is also quietly changing. But only a few months ago, the Fed also discuss how to start out part of the monetary stimulus.

26 to 28, local time, the global central bank officials, and scholars will gather from various quarters in Wyoming to attend, held annually in August where the annual policy conference of the Federal Reserve, the Group of Seven (G7) leaders will also attend the central bank.

However, Bank of Tokyo-Mitsubishi UFJ, said economist Dana had not only the United States, the global economy beginning from June have slowed or even stalled, compared with last year, the annual meeting of the atmosphere is changing. Some analysts said that last year all around the “exit” policy discussions become a major focus of the meeting, but once again into the uncertain global economic times, in order to prevent deflation, the Bank or the United States and Japan opened a new round of quantitative easing.

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