The Bank of Japan on Thursday decided to end its ultraeasy monetary policy. Following are questions and answers about the change at the central bank.
What is the ultraloose monetary policy and why was it introduced?
The so-called quantitative monetary easing policy was introduced in March 2001 to fight deflation. The central bank, using the conventional method of keeping interest rates at zero, has also been flooding the banking system with extra money by purchasing bills and short-term government bonds from banks.