The Bank of Japan kept its record stimulus unchanged as Governor Haruhiko Kuroda looks to keep stoking inflation and boost economic momentum that’s been sapped by a higher sales tax.
The central bank kept its pledge to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen ($667 billion), the bank said in a statement today, in line with all 31 economists surveyed by Bloomberg News.
Kuroda’s bid to spur faster price gains is facing stiffer headwinds after April’s sales-levy hike triggered the steepest contraction since the March 2011 earthquake. The higher cost of living is crimping consumption, while the yen’s 5 percent fall over the past year is failing to ignite export growth and fuel production.
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