Tags: Japan | bank | economy

Bank of Japan Delays New Monetary Easing Measures

Friday, 04 October 2013 08:08 AM

The Bank of Japan kept monetary policy steady on Friday and revised up its assessment on capital expenditure, encouraged by growing signs that the benefits of its stimulus policy are broadening.

As widely expected, the BOJ voted unanimously to maintain its pledge of increasing base money, or cash and deposits at the central bank, at an annual pace of 60 trillion ($617 billion) to 70 trillion yen.

"Japan's economy is recovering moderately," the BOJ said in a statement, keeping its economic assessment unchanged, although it revised up its view on capital expenditure to say it is picking up.

BOJ board member Takahide Kiuchi proposed that the central bank make its 2 percent inflation target a medium- to long-term goal, and commit to intensive easing in the next two years. This would differ from the BOJ's current commitment to hit its inflation target in roughly two years.

Kiuchi's proposal was rejected in an 8-1 vote.

BOJ Governor Haruhiko Kuroda will hold an embargoed news conference from 3:30 p.m. (0630 GMT) with his comments expected to come out any time after 4:15 p.m. (0715 GMT).

The BOJ offered an intense burst of monetary stimulus in April, pledging to double the supply of money in two years by boosting purchases of government bonds and risky assets. It has stood pat on monetary policy since then.

© 2020 Thomson/Reuters. All rights reserved.

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The Bank of Japan on Friday held off launching fresh monetary easing measures despite worries that a possible US default and a sales hike at home would take steam out of the world's third-largest economy.
Friday, 04 October 2013 08:08 AM
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