Central Bank to increase bond purchases by 50%

JAPAN - The Bank of Japan announced today it will increase bond purchases by 50%, adding 1 trillion yen (8.1 billion dollars) to the banking system.

The move breaks a policymaking impasse between the country's monetary authority and the government and focuses expectations on Prime Minister Junichiro Koizumi's proposed structural reformmeasures.

The Nikkei rose 3.8% on the news, reacting to the policy significance, rather than the increased banking system liquidity. The move comes amid the gover