TOKYO (Reuters) - The Bank of Japan cut next fiscal year's inflation
forecast on Wednesday and expanded a loan scheme aimed at boosting
lending, hoping to deflect criticism it is sitting idly by as a slump in
oil prices pushes inflation further away from its target.
As widely expected, the BOJ held off on expanding its massive stimulus program and maintained its pledge to increase base money at an annual pace of 80 trillion yen ($678 billion) through buying government bonds and risk assets.
In a review of its long-term estimates, the BOJ cut its core consumer inflation forecast for the year beginning in April to 1.0 percent from 1.7 percent projected three months ago.
But it slightly raised its inflation forecast for fiscal 2016 to 2.2 percent from 2.1 percent, a sign central bankers are publicly sticking to the view Japan will hit an inflation goal of 2 percent.
Markets are focusing on how Governor Haruhiko Kuroda, at his post-meeting briefing at 3:30 p.m. (0630 GMT), will reconcile the new projections with the pledge he had made that the BOJ will achieve 2 percent inflation next fiscal year.
Read more Click Here / www.trade4x.net
As widely expected, the BOJ held off on expanding its massive stimulus program and maintained its pledge to increase base money at an annual pace of 80 trillion yen ($678 billion) through buying government bonds and risk assets.
In a review of its long-term estimates, the BOJ cut its core consumer inflation forecast for the year beginning in April to 1.0 percent from 1.7 percent projected three months ago.
But it slightly raised its inflation forecast for fiscal 2016 to 2.2 percent from 2.1 percent, a sign central bankers are publicly sticking to the view Japan will hit an inflation goal of 2 percent.
Markets are focusing on how Governor Haruhiko Kuroda, at his post-meeting briefing at 3:30 p.m. (0630 GMT), will reconcile the new projections with the pledge he had made that the BOJ will achieve 2 percent inflation next fiscal year.
Read more Click Here / www.trade4x.net
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