Investing.com - The Bank of Japan made no changes to its aggressive monetary easing policy on Wednesday, while upgrading its view of the domestic economy.
“Japan’s economy has started picking up. Exports have stopped decreasing as overseas economies have been moving out of the deceleration phase that had continued since last year and are gradually heading toward a pick-up,” the BoJ said in its statement.
In its third meeting under the helm of new Governor Haruhiko Kuroda, the BOJ affirmed plans to increase the monetary base at an annual pace of about JPY60 trillion to JPY70 trillion.
The central bank said the measures would continue “as long as it is necessary” to achieve its goal of a stable inflation rate of 2%.
The BoJ also said that although the core consumer price index remained stuck in deflation, “some indicators suggest a rise in inflation expectations.”
Following the decision, the yen was modestly lower against the U.S. dollar, with USD/JPY adding 0.1% to trade at 102.58.
Meanwhile, Asian stock markets were mixed. Japan’s Nikkei 225 Index rose 1.8%, Australia’s ASX/200 Index shed 0.3%, while Hong Kong's Hang Seng Index declined 0.7%.
“Japan’s economy has started picking up. Exports have stopped decreasing as overseas economies have been moving out of the deceleration phase that had continued since last year and are gradually heading toward a pick-up,” the BoJ said in its statement.
In its third meeting under the helm of new Governor Haruhiko Kuroda, the BOJ affirmed plans to increase the monetary base at an annual pace of about JPY60 trillion to JPY70 trillion.
The central bank said the measures would continue “as long as it is necessary” to achieve its goal of a stable inflation rate of 2%.
The BoJ also said that although the core consumer price index remained stuck in deflation, “some indicators suggest a rise in inflation expectations.”
Following the decision, the yen was modestly lower against the U.S. dollar, with USD/JPY adding 0.1% to trade at 102.58.
Meanwhile, Asian stock markets were mixed. Japan’s Nikkei 225 Index rose 1.8%, Australia’s ASX/200 Index shed 0.3%, while Hong Kong's Hang Seng Index declined 0.7%.