The Bank of Japan refrained from increasing monetary stimulus, as Governor Haruhiko Kuroda bets on stronger growth fueling inflation that is 1/10 the BOJ’s target.
The central bank will continue to boost the monetary base at an annual pace of 80 trillion yen ($662 billion), it said in a statement. All of 36 economists in a Bloomberg survey forecast the outcome.
Japan is flashing mixed signals on its recovery from last year’s recession, with an increase in spending by companies and households and an inventory buildup that threatens to damp the economy after its first back-to-back quarterly expansion since 2013. Kuroda said last week there was no need for further easing now because a virtuous economic cycle was working, even as cheaper oil weighed on inflation.