"The BOJ has been and will always be ready to take appropriate and decisive action when the economy deviates from our baseline scenario, or when risks to our scenario materialise"
- Deputy Governor Kiyohiko Nishimura
The Bank of Japan claimed its readiness to expand its asset purchase programme to boost economic growth if risks to the outlook heighten, Deputy Governor Kiyohiko Nishimura said on Wednesday. The BoJ is likely to loosen its monetary policy again this month in the face of growing political pressure. Moreover, the bank is planning to keep its stimulus programme in place even after the end-2013 deadline for purchases, in case 1% inflation level is not foreseen by then. The world's third biggest economy is at risk of a second straight quarter of contraction and slipping into recession, so the government is likely to get a pro-easing majority at the BoJ. During the last meeting, on October 30, the bank decided to add 11 trillion yen ($134 billion) to its asset purchase programme.
"The BOJ has been and will always be ready to take appropriate and decisive action when the economy deviates from our baseline scenario, or when risks to our scenario materialise," Deputy Governor Kiyohiko Nishimura told business leaders in the northwestern city of Niigata on Wednesday.
"Shirakawa forgot the right kind of economics," Hamada said from his home in Wallingford, Connecticut. "He sticks to his principles and doesn't use flexible political judgment."
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