It was reported earlier today, that deficit on Japans Trade Balance widened during April, as import grew at a higher rate than export. Deficit figure rose to 880 billion JPY during April from 364 billion JPY during the preceding month. It became clear that export rose below expectations by 3.8% annually, while import exceeded estimates and registered an increase by 9.4%. As a result balance deficit rose to its highest value since April 1979.
Japanese yen dropped significantly, providing support to export-oriented companies, but however, limited demand from European countries contributed to negative development in Japanese export.
Meanwhile, Bank of Japan confirmed its intentions of doubling the Money Base in 2 years time, as bond yield rose. Japans Central Bank intends an expansion in money supply by 60-70 trillion JPY a year, continuing to follow its monetary policy in order to raise inflation rate to 2% and keep it close to that level.
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