Bank of Ja­pan holds off fur­ther eas­ing steps de­spite tribu­la­tions

The China Post - - WORLD BUSINESS -

The Bank of Ja­pan held off fur­ther eas­ing mea­sures on Wed­nes­day de­spite strug­gling to drag up flatlin­ing in­fla­tion that is de­fy­ing a mas­sive stim­u­lus launched two years ago.

The cen­tral bank stayed pat on its record easy money pro­gram, which is adding about 80 tril­lion yen (US$663 bil­lion) to the money sup­ply ev­ery year.

Af­ter a two-day meet­ing, the BOJ said in a state­ment con­sumer in­fla­tion was likely to be about zero “for the time be­ing” due to lower en­ergy prices. How­ever, it added “in­fla­tion ex­pec­ta­tions ap­pear to be ris­ing on the whole from a some­what longer-term per­spec­tive.”

Kuroda told a press con­fer­ence that the BOJ board ex­pected price lev­els will start to rise later this year as gen­eral eco­nomic con­di­tions im­prove.

“We be­lieve the rise of the in­fla­tion rate will ac­cel­er­ate per­haps af­ter the com­ing au­tumn, con­sid­er­ing that ex­pected in­fla­tion will likely rise over the long run, as the im­pact of the fall in en­ergy prices di­min­ishes, while the gap be­tween sup­ply and de­mand con­tin­ues to im­prove,” Kuroda said.

But he added that the bank stood ready

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