-Haruhiko Kuroda, BoJ Governor
The Bank of Japan kept its monetary stimulus programme intact in line with expectations, while analysts still predict further moves in the coming months as inflation consistently runs below the bank's goal and economic growth is still fragile. The central bank decided to maintain its intention to increase base money, or cash and deposits at the central bank, at an annual pace of 80 trillion yen through purchases of government bonds and risky assets. The BoJ held its opinion that the Japanese economy is recovering moderately, and on track to hit 2% inflation target next fiscal year as companies raise wages and spending. The central bank has stood on hold since expanding stimulus in October last year to prevent slumping oil prices, and a subsequent decline in inflation, from delaying an end to deflation. Given a precipitous decline in oil prices, some analysts say it will become necessary for the BoJ to act to defend its inflation targets. Japan's consumer inflation, stripped of the sales tax hike, stood at 0.5% in October, still far short of the central bank's target of 2% by March 2016.
Commenting the BoJ's monetary policy decision, Haruhiko Kuroda, the central bank's Governor, said he saw no immediate need to expand monetary stimulus at this stage, but highlighted that the bank stands ready to easy policy further should inflation uptrend was disrupted by risks including a sluggish economy or sharp falls in oil prices.
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