Tuesday, 22 January 2013

BoJ adopts 2% inflation target

The Bank of Japan made its much-anticipated announcement today on the adoption of a two per cent inflation target. AFP/CNA reports:

The Bank of Japan (BoJ) on Tuesday adopted a two per cent inflation target and set out plans for indefinite monetary easing in a policy shift that Japan's new premier hailed as "epoch making"...

"The Bank will introduce a method of purchasing... financial assets every month without setting any termination date," it said on Tuesday...

The BoJ's asset purchases usually come with a fixed expiry date, but the new scheme will see about 13 trillion yen in monthly purchases "for some time" starting from next year, it said.

The BoJ left its benchmark interest rate at between zero to 0.1 percent.

The BoJ also today raised its economic growth forecast for the fiscal year to March 2014 to 2.3 percent from 1.6 percent previously.

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