Bank of Japan maintains loose monetary policy

|By:, SA News Editor

As expected, the Policy Board of the Bank of Japan has maintained its program of expanding the monetary base at an annual rate of ¥60-70T ($611-713B) a year. (PR)

The BOJ said it is making steady progress in achieving its target of 2% inflation, and reiterated that it expects CPI of 1.3% in 2014-15 and 1.9% a year later.

The central bank slightly increased its 2014-15 GDP growth outlook to 1.5% from a prior prediction of 1.3% but maintained its 2015-16 forecast at 1.5%.

The BOJ warned that "overseas economies are performing somewhat weaker than projected" in its April semi-annual report. However, the bank expects those economies "to gradually pick up," mainly in advanced areas.

The Nikkei is -1.2% and the USD-yen is -0.2% at ¥98.32. (PR)

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