Credit-easing Steps By Central Banks, At A Glance
By The Associated Press
Major central banks around the world have been pursuing low-interest rate policies to try to stimulate growth and reduce high unemployment.
The latest development came Tuesday with the Bank of Japan's announcement that it was setting an inflation target of 2 percent â¿¿ twice the current target. It was a signal that the Bank of Japan is ready to accept the risk of higher inflation in exchange for combating a prolonged bout of deflation.
Deflation is a destabilizing drop in income, the prices of goods and services and the value of stocks, homes and other assets.The Bank of Japan had not been meeting its lower inflation target of 1 percent. Price increases had hovered below 0.5 percent for the past two years. Among the recent steps central banks have taken to try to bolster their banking systems and economies: â¿¿ BANK OF JAPAN Interest rates: Has kept its benchmark interest rate at zero to 0.1 percent. Bond buying: Announced Tuesday that it will maintain its current level of bond buying and that starting in January 2014 it will expand the program to buy about 13 trillion yen ($145 billion) a month in Japanese government bonds and other assets. â¿¿ FEDERAL RESERVE Interest rates: Has kept its benchmark short-term rate at a record low near zero since December 2008. Last month, it said it planned to keep its short-term rate at that level until unemployment drops below 6.5 percent â¿¿ as long as inflation expectations remain below 2.5 percent. (Unemployment is now 7.8 percent.) It marked the first time the Fed had linked a future rate move to a specific unemployment rate. Bond buying: It said in December that it will spend $85 billion a month to buy Treasurys and mortgage-backed securities until the job market improves substantially.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV