BOJ Remains Steady

The Bank of Japan (BOJ) on Wednesday kept its massive stimulus program intact, in the wake of data that showed the economy has slipped into recession and ahead of snap elections expected in December.

The move was widely expected after the central bank surprised markets last month by expanding its quantitative easing program, swelling Japan’s monetary base by around 80 trillion yen each year, up from 60-70 trillion yen currently.

On Tuesday, Prime Minister Shinzo Abe announced a widely-telegraphed decision to dissolve parliament and hold snap elections, likely in mid-December. He also put off raising consumption tax for a second time, to 10 percent, which was initially scheduled for October 2015, by 18 months.


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