The Bank of Japan expanded its quantitative and qualitative easing unexpectedly on Friday.
In a 5-4 vote, the Policy Board decided to raise the monetary base at an annual pace of about JPY 80 trillion. The earlier plan was to increase it by about JPY 60-JPY 70 trillion.
The bank will lift purchases of Japanese government bond purchases so that their outstanding amount will rise by around JPY 80 trillion compared to the earlier target of JPY 50 trillion.
It will extend the average duration of JGB holdings to around 10 years. The bank will also increase purchase exchange-traded funds and Japan real estate investment trusts.
The BoJ said the economy is expected to continue growing at a pace above its potential. The bank reiterated that it will continue monetary easing to achieve the price stability target of 2 percent.
Published: 2014-10-31 06:18:00 UTC+00
BoJ Expands Monetary Policy Stimulus
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