The Bank of Japan plans to pump around ¥10 trillion into the banking system to rein in deflation and the surging yen. Here are some questions and answers about the ramifications:
Why has the BOJ introduced the measure?
The central bank expects the measure to help the economy overcome deflation, in which price drops lead to deterioration of corporate earnings, job cuts and household income declines. The measure is timed to back up an economic stimulus package now being hammered out by the government.