-Haruhiko Kuroda, BoJ Governor
On October 31 the Bank of Japan unexpectedly increased the size of its monetary-expansion programme from 60-70 trillion yen per year to 80 trillion yen, attempting to bring consumer-price inflation to 2% and end the deflationary threat which has hampered growth in the economy for the past 15 years. On Tuesday, the BoJ Governor Haruhiko Kuroda defended the decision and stressed the central bank stands ready to deploy more stimulus to meet its inflation goal. Nevertheless, the minutes of the latest BoJ board member meeting showed four policy makers expressed concerns that expanding quantitative easing could do the economy more harm than good. Thus, the surprise announcement of extra stimulus on October 31 was approved by the narrowest majority, with five of nine members having been in favour of doing more. Those, who were against expanding QE programme, argued the effects of stimulating the economy and inflation would not be large, while fresh action could instead further distort bond and money markets' functioning. Nevertheless, Kuroda stands firm that easing was necessary to ensure that Japan's public shakes off its "deflationary mindset", as well as prompt companies to start investing and employing more amid expectations that prices will increase. The recent BoJ's decision pushed the Yen lower, with the weak currency benefiting exports, but hurting households and non-manufacturers by raising import costs.
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