The Bank of Japan launched what promises to be an aggressive campaign against deflation Thursday, announcing a fresh set of policies designed to spur spending and economic growth.
Newly installed Prime Minister Shinzo Abe has made the central bank’s 2% inflation target a top political priority. His directive: “Everything possible” must be done to achieve the goal within two years.
The central bank obliged, pledging Thursday to achieve the inflation target at the “earliest possible time.”
The BoJ said it would expand its balance sheet by purchasing longer-term debt and more exotic securities like ETFs. The bank also merged its asset-purchase programs and suspended a rule that prohibited the purchase of longer-term debt.
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