- Bank of Japan
The Bank of Japan kept intact its massive monetary policy stimulus and its optimistic outlook for the world's third biggest economy, signalling its belief that Japan's economy will gain momentum enough to lift inflation to its 2% goal without extra monetary easing. In a widely expected decision, the central bank said it would proceed with its record 80 trillion yen annual asset-buying programme that is aimed at underpinning prices and kick-starting growth. The BoJ also said it would improve its communication by releasing more frequent and detailed reports on its economic assessment, while cutting the number of policy meetings to eight from the current 14 a year.
Japan's economic growth has been robust lately. According to recent official data, the economy grew 1% in the first quarter, compared with the forecast for a 0.7% expansion, and much stronger than the 0.3% economic output growth recorded in the December quarter. The Bank of Japan is hoping that the stronger economy will begin to generate price pressures soon, through a "virtuous cycle" of spending, investment, and income growth. According to the central bank's forecasts, inflation is set to hit the 2% target in the first half of the fiscal 2016 year.
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