Japan’s central bank refrained from boosting stimulus as the economy shows signs of weathering the impact of the first sales-tax increase since 1997.
The Bank of Japan will continue to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen ($691 billion) per year, it said in a statement today in Tokyo, in line with forecasts of all 32 economists in a Bloomberg News survey.
While an economic contraction is projected for this quarter, companies’ plans to boost investment are adding to signs that growth may bounce back. Governor Haruhiko Kuroda is chasing a 2 percent inflation target, with economists forecasting that more monetary loosening will be needed by the end of the year to achieve the goal.
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