The Bank of Japan kept monetary policy steady on Wednesday, preferring to save its limited options while hoping that a tight job market will lift wages and consumption enough to offset the pain from China’s economic slowdown.
As widely expected, the BOJ reiterated its pledge to increase base money, or cash and deposits at the central bank, at an annual pace of 80 trillion yen ($665 billion) through purchases of government bonds and risky assets.
“Japan’s economy continues to recover moderately although exports and production have been affected by the slowdown in emerging economies,” the BOJ said in a statement, keeping its assessment of the economy unchanged from the previous month.
BOJ Governor Haruhiko Kuroda will hold a news conference at 3:30 p.m. (0130 EDT) to explain the policy decision.
The BOJ has kept monetary policy steady since expanding stimulus in October last year.
($1 = 120.4600 yen)
Source: Reuters
