Bank of Japan holds policy steady, says recovery on track
Published Dec 19, 2013 10:39PM ET
The BOJ will keep money market operations so that the monetary base increases at an annual pace of about Y60 to Y70 trillion, it said, adding that financial asset purchases will also proceed as laid out in April with holdings of Japanese government bonds to increase at an annual pace of about Y50 trillion.
In the near-term outlook, the bank said the economy will "basically maintain the moderate recovery trend" despite sharp fluctuations in domestic demand - high spending before the April sales tax hike and a widely expected slump afterwards.
The BOJ expects the year-on-year rate of increase in consumer prices to "rise for the time being" toward its 2015 goal of a stable 2% inflation rate.
"Regarding risks, there remains a high degree of uncertainty concerning Japan's economy, including the prospects for the European debt problem, developments in the emerging and commodity-exporting economies, and the pace of recovery in the U.S. economy," the BOJ said.
BOJ Governor Haruhiko Kuroda will hold a news conference from 1530 to 1615 JST (0630 to 0715 GMT).
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Written By: Investing.com
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