The Bank of Japan kept its record easing while signaling progress in its fight against deflation, days after a U.S. Federal Reserve decision to taper policy helped weaken the yen to a five-year low against the dollar.
Governor Haruhiko Kuroda’s board maintained its pledge to expand the monetary base by an annual 60 trillion to 70 trillion yen ($670 billion) today after a two-day policy meeting in Tokyo. The decision was in line with forecasts of all 35 economists surveyed by Bloomberg News.
Kuroda’s commitment to ease until inflation is stable at about 2 percent underscores the difference in policy direction between the BOJ and the Fed, which could end its bond-purchase program next year. The yen’s 17 percent slide against the dollar this year is fueling price gains and boosting exporters’ profits, aiding Prime Minister Shinzo Abe’s bid to end 15 years of deflation.