- Hideo Kumano, chief economist at Dai- ichi Life Research Institute and a former BOJ official
Japanese monetary base rose more than expected last month, a sign actions made by the Bank of Japan increased the amount of currency in circulation. The total amount of domestic currency and current account deposits held at the BoJ jumped 10.8% in October, up from 9% in the previous month. However, the government is planning to expand its asset- purchase program by the end of November, as the economy stands at risk of sliding into recession.
"The easing hasn't ended," said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management. "It's possible that the BOJ will next ease around January."
"The BOJ has unveiled similar lending facilities in the past, but they have never been effective in stimulating borrowing demand," said Hideo Kumano, chief economist at Dai- ichi Life Research Institute and a former BOJ official. "The new loan program will probably have little impact."
The Nikkei 225 Stock Average dropped 0.48 per cent, or 43.78 points, to 9,007.44. The broader Topix Index decreased 0.55 per cent , or 4.14 points, to 747.95.
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