Inflation Goal of Bank of Japan

The Bank of Japan on Tuesday decided to effectively introduce an inflation goal of 1 percent and further eased its monetary policy through an expansion of its asset purchase program in a bid to overcome the country’s prolonged deflation and achieve sustainable growth.

During a two-day policy meeting through Tuesday, the nine-member Policy Board also voted unanimously to leave its key interest rate unchanged effectively at zero percent, while maintaining its assessment that the country’s economy has been more or less flat amid a slowdown in overseas economies and the yen’s rise.

Referring to the continuing high uncertainty surrounding economic developments both at home and abroad, the BOJ said in a statement issued after the meeting it has judged it necessary to take the latest actions partly to ”better ensure the economy’s return to a moderate recovery path.”

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