Bank of Japan maintains monetary policy

Dec. 20, 2013 at 1:40 AM   |   0 comments

TOKYO, Dec. 20 (UPI) -- Japan's central bank, maintaining its earlier economic assessment of moderate recovery, Friday made no change in its 9-month-old liberal monetary easing policy.

The Bank of Japan on its website said its nine-member board after its monetary policy meeting unanimously decided to continue with its market operations to increase the monetary base at an annual pace of about 60 trillion to 70 trillion yen.

The monetary easing policy began in April of this year, calling for doubling the monetary base and boosting purchases of government bonds. The effort is to lift the country's economy out of its 15 years of deflation and achieve a 2 percent inflation rate in two years.

"The Bank will continue with quantitative and qualitative monetary easing, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner."

The bank also said: "Japan's economy has been recovering moderately," and that overseas economies as a whole were also picking up moderately.

As a result, both Japan's exports and business fixed investments aided by hither corporate profits also have also been rising.

"Public investment has continued to increase, and housing investment has also increased," the bank said.

Japan's private consumption has remained resilient, with improvement in the employment and income situation, it said.

The bank said the current inflation is around 1 percent, adding "inflation expectations appear to be rising on the whole."

In its outlook, the BOJ said Japan's economy is expected to "continue a moderate recovery as a trend, while it will be affected by the front-loaded increase and subsequent decline in demand prior to and after the consumption tax hike."

Japan's sales tax will go up to 8 percent starting April from 5 percent currently as Prime Minister Shinzo Abe's government prepares to check the soaring public debt.

Topics: Shinzo Abe
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