The Bank of Japan has introduced a negative interest rate to boost growth and fight deflation. Financial markets welcomed the news, with Japan's benchmark Nikkei index closing 2.8 percent higher.
Japan's government has nominated Haruhiko Kuroda for a second term as central bank governor, giving the veteran finance chief more time to battle deflation and kick-start the world's third largest economy.
The BOJ has announced an overhaul to its monetary policy in hopes of shoring up its sputtering economy. The new strategy sidelines years of loose monetary policy, which did little to pull the country out of its funk.
Japan's central bank has had to admit that its goal of pulling the nation out of its deflationary spiral is not achievable during the term of the lender's current governor. The announcement is a blow to Abenomics.
Japan's inflation rate has continued its slide, with consumer prices falling for the eighth month in a row - the longest string of declines in five years and underscoring the country's struggle to stop deflation.
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