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4 Oct 2013
Bank of Japan maintains monetary expansion
FXstreet.com (London) - The Bank of Japan has maintained monetary policy at existing levels, while upgrading its view on capital expenditure. Following a two day meeting, the board of the BoJ voted unanimously to maintain its monetary expansion at a rate of JYP60-70 pre annum.
The meeting comes after Prime Minister Shinzo Abe announced earlier this week that the sales tax would be hiked to 8 percent in April 2014, up from 5 percent.
The BoJ rejected board member Takahide Kiuchi’s proposal that the Central Bank switch its attention away from a 2 percent inflation target, making it a long term goal, instead focussing on aggressive easing over two years. The proposal was rejected by 8-1.
BoJ chairman Haruhiko Kuroda in April unveiled a plan to buy more than 7 trillion yen ($72 billion) of bonds a month to achieve 2 percent inflation in two years.
The yen made advances going into the announcement, aided by dollar weakness on the US government shutdown. USD/JPY currently stands at JPY97.0950.
The meeting comes after Prime Minister Shinzo Abe announced earlier this week that the sales tax would be hiked to 8 percent in April 2014, up from 5 percent.
The BoJ rejected board member Takahide Kiuchi’s proposal that the Central Bank switch its attention away from a 2 percent inflation target, making it a long term goal, instead focussing on aggressive easing over two years. The proposal was rejected by 8-1.
BoJ chairman Haruhiko Kuroda in April unveiled a plan to buy more than 7 trillion yen ($72 billion) of bonds a month to achieve 2 percent inflation in two years.
The yen made advances going into the announcement, aided by dollar weakness on the US government shutdown. USD/JPY currently stands at JPY97.0950.