Views mixed over BOJ easing after Aso's remarks

posted on October 25, 2015

Japanese Finance Minister Taro Aso's remarks Friday brushing aside an immediate need for additional monetary easing by the Bank of Japan helped create mixed views among financial market players over whether the central bank will take action at its next policy-setting meeting on Oct. 30.

Recently, expectations have increased that the BOJ will decide to reinforce its monetary easing policy at the upcoming Policy Board meeting, with economic activities in Japan being sluggish and growth in prices stagnant.

According to recent government dada, Japan's seasonally adjusted gross domestic product in April-June fell a real 1.2 pct from the previous quarter at an annual rate, the first contraction in three quarters. The core consumer price index, excluding fresh foods, dropped 0.1 pct in August from a year earlier, the first fall since the BOJ launched the "quantitative and qualitative" easing policy in April 2013.

Under the easing regime, the BOJ is aiming to boost the country's year-on-year consumer inflation to 2 pct. It currently expects to achieve the target around the first half of fiscal 2016, which starts next April.

source by jiji
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