Arab Today, arab today bank of japan holds fire on boosting stimulus
Last Updated : GMT 02:46:51
Arab Today, arab today
Arab Today, arab today

Bank of Japan holds fire on boosting stimulus

Arab Today, arab today

Arab Today, arab today Bank of Japan holds fire on boosting stimulus

Tokyo's bussiness and finance district, housing some of the country's major banking headquarters
Tokyo - AFP

The Bank of Japan held fire Wednesday on expanding its already huge stimulus programme, despite mounting pressure on policymakers from sluggish growth and stagnant prices.
The decision follows disappointing data that has raised questions about the effectiveness of Prime Minister Shinzo Abe's drive to kickstart the economy, which contracted in the second quarter of the year.

It also comes a day after the International Monetary Fund lowered its growth forecast for this year and next, calling on authorities to work harder to slash a national debt that is more than twice as big as gross domestic product (GDP).

On Wednesday the BoJ maintained its recent rhetoric on the state of the economy, saying in a statement it "has continued to recover moderately, although exports and production have been affected by the slowdown in emerging economies".

Looking ahead, it repeated: "Japan's economy is expected to continue recovering moderately."

The yen firmed against the dollar after the announcement. The greenback bought 119.90 yen, compared with 120.28 yen in New York.
Bank governor Haruhiko Kuroda later insisted inflation was on a rising trend, although he admitted that "wholesale prices are declining to some extent" due partly to falls in oil prices.

Asked if the BoJ was ready to take fresh easing measures, Kuroda repeated: "We will examine both upside and downside risks to economic activity and prices, and if necessary we will take additional measures without hesitating."

While economists had expected the bank to maintain its current 80 trillion yen ($665 billion) annual asset-buying scheme at Wednesday's meeting, attention is now focused on a gathering at the end of the month, with speculation it will act then.

Abe in April 2013 unveiled a plan to kickstart the economy and bring an end to painful deflation with a vast government spending programme and a central bank asset-buying programme -- or quantitative easing -- dubbed "Abenomics".

While the scheme showed early promise, with stocks surging and growth advancing, recent weak data has raised questions about its effectiveness as consumer prices stagnate and economic growth remains torpid.

Another part of the scheme -- reforms to cut red tape in the highly regulated economy -- has also stalled. Experts say Abe's push to pass highly unpopular security legislation last month could make it even harder to enact reforms due to sagging public support.

Asked about his view on Abe's recent pledge to boost Japan's nominal economic growth by 20 percent to 600 trillion yen ($5 trillion) by 2020, Kuroda said "it's doable but challenging," noting painful reforms are the key.

The IMF estimated in its semi-annual World Economic Outlook that Japanese growth this year would hit 0.6 percent, followed by 1.0 percent expansion in 2016.

That compares with projections earlier this year for 0.8 percent and 1.2 percent respectively.

Data last week showed spending among Japanese households rebounded in August, offering a glimmer of hope after a string of week figures, but economists warned the world's number three economy was still headed for recession.

Factory production fell unexpectedly for a second month in August, while consumer prices dropped for the first time in more than two years, according to data last month.

"Even though industrial production is moving flat, the virtuous cycle of corporate profit to expenditure is working, and (recovery in) domestic demand is steady," Kuroda said.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today bank of japan holds fire on boosting stimulus Arab Today, arab today bank of japan holds fire on boosting stimulus

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday