Bank of Japan holds off further easing steps despite tribulations
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