The Bank of Japan held off on expanding monetary stimulus on Thursday, even as global headwinds, a strong yen and soft consumption threatened to derail a fragile economic recovery.
The central bank maintained its pledge to increase base money, or cash and deposits in circulation, at an annual pace of 80 trillion yen ($985.80 billion). It also left unchanged a 0.1% negative interest rate it applies to some of the excess reserves financial institutions park at the BOJ.
The BOJ decided to adopt a 300 billion yen loan-supplying programme aimed at assisting banks operating in areas hit by this month's earthquake in southern Japan.
Its decision to keep the base money target was made by an 8-1 vote, while its decision to maintain the 0.1 per cent negative rate was made by a 7-2 vote.
BOJ Governor Haruhiko Kuroda will hold a news conference at 3:30 pm (0630 GMT) to explain the policy decision.
The BOJ stunned markets in January by adding a 0.1% negative interest rate to its massive asset-buying programme, dubbed "quantitative and qualitative easing" (QQE), in a fresh attempt to accelerate inflation to its 2% target.
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The central bank maintained its pledge to increase base money, or cash and deposits in circulation, at an annual pace of 80 trillion yen ($985.80 billion). It also left unchanged a 0.1% negative interest rate it applies to some of the excess reserves financial institutions park at the BOJ.
The BOJ decided to adopt a 300 billion yen loan-supplying programme aimed at assisting banks operating in areas hit by this month's earthquake in southern Japan.
Its decision to keep the base money target was made by an 8-1 vote, while its decision to maintain the 0.1 per cent negative rate was made by a 7-2 vote.
BOJ Governor Haruhiko Kuroda will hold a news conference at 3:30 pm (0630 GMT) to explain the policy decision.
The BOJ stunned markets in January by adding a 0.1% negative interest rate to its massive asset-buying programme, dubbed "quantitative and qualitative easing" (QQE), in a fresh attempt to accelerate inflation to its 2% target.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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