News report

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News report

  1. 1. Bank of Japan back in stimulus mode
  2. 2. <ul><li>Highlights: </li></ul><ul><li>Interest rates are kept virtually at zero. </li></ul><ul><li>More decisive actions, like buying of government bonds, focusing on limited funding scheme. </li></ul><ul><li>This policy is in the run to stabilize the prices. </li></ul><ul><li>Such steps will have a great impact on the currencies. </li></ul>
  3. 3. <ul><li>Impact on India: </li></ul><ul><li>With the economy signs of waning, they are now looking for measures to stall another recession. </li></ul><ul><li>US Federal Bank is following quantitative easing. </li></ul><ul><li>Japanese Central Bank has set up $60billion fund to buy government bonds, commercial paper and other asset-backed securities. </li></ul><ul><li>Availability of cheap money in developed world is causing headaches for developed economies. </li></ul>Continued…
  4. 4. Continued… <ul><li>Developments in Japan cause more yen funds to flow into India as borrowers access cheaper funds in India. </li></ul><ul><li>Central banks in emerging economies will have to raise rates to neutralize the rising tide of liquidity, which is grappling with a serious inflation issues. </li></ul><ul><li>RBI has raised policy rates five times this year, with its benchmark lending rate currently at 6%. </li></ul>
  5. 5. <ul><li>Impact on gold: </li></ul><ul><li>Gold climbed a record in New York and London and it would set up asset purchases and a dollar weakened, boosting demand for gold as a protection of wealth. </li></ul><ul><li>Silver advanced to a 30-year high. </li></ul><ul><li>Bullion rose to a record $1325.75 an ounce. </li></ul><ul><li>Gold in Indian market hit an all-time high of Rs.19508.15 per 10gm. </li></ul>

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