Tokyo: Japan’s central bank on Friday said it was keeping its ultra-loose monetary policy in place, in keeping with expectations, as the world’s third-largest economy struggles to rekindle growth. The Bank of Japan’s massive monetary easing programme is a cornerstone of Prime Minister Shinzo Abe’s “Abenomics” campaign to kickstart the economy after years of torpid growth.
The decision comes as inflation remains stubbornly low, with Japan struggling to combat fears of deflation.
The central bank has failed to achieve the two per cent inflation rate target, which is thought crucial to boosting the economy, even though Japan has notched up eight straight quarters of growth.
“We think that the timing of achieving the two per cent inflation rate target is likely to be around fiscal 2019,” BoJ Governor Haruhiko Kuroda told a press conference on Friday afternoon. — AFP
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