The Bank of Japan refrained from adding to unprecedented monetary stimulus after business confidence surged and Prime Minister Shinzo Abe decided the economy was strong enough to weather a sales-tax increase. Governor Haruhiko Kuroda’s board retained a goal of expanding the monetary base by 60 trillion to 70 trillion yen ($720 billion) a year, the central bank said in Tokyo today. Haruhiko Kuroda, governor of the Bank of Japan (BOJ), and his officials will monitor the risk that a 5 trillion yen fiscal package announced this week won’t be enough to offset the blow to consumption and economic growth from the tax increase set for Most economists predict additional stimulus in the first half of next year as Abe and the BOJ try to catapult the nation out of 15 years of deflation. The BOJ maintained its view that the Japanese economy is recovering moderately, according to the statement. “ Business fixed investment has been picking up,” and “housing investment has also increased,” the bank said, changing the wording slightly. The central bank will continue its monetary easing as long as needed to achieve stable 2 percent inflation, making policy adjustments as appropriate, according to the statement.
Posted on: Fri, 04 Oct 2013 06:19:01 +0000
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