The Bank of Japan decided to refrain
from more stimulus and remain its asset-purchase programme at 55 trillion Yen ($702
billion). This was largely expected by economists. Focus now turns to the
meeting on October 30 as Credit Agricole and Morgan Stanley expect two
consecutive quarters of contraction through the end of the year.
"I see a very high chance for easing
at the next meeting," Hiroshi Shiraishi, Economist at BNP Paribas SA in Tokyo said. "They could
increase asset purchase funds by 10 trillion yen and buy riskier assets."
"Maehara's attendance didn't seem to
have an impact on today's meeting," said Masaaki Kanno, Chief Economist at
JPMorgan Securities Japan Co. "That doesn't mean he won't have an impact on
policy in the coming months."