BOJ 'split' over further easing causes turbulence in markets

Tokyo

FINANCIAL markets in Tokyo were plunged into renewed turbulence on Thursday by reports that the Bank of Japan's (BOJ) Policy Board is divided over whether to launch further monetary easing later this month, even though markets are taking such a move largely for granted.

The yen has eased back sharply in recent days, and the Tokyo stock market moved to a several-month high, on the assumption that the Policy Board would announce fairly aggressive further easing moves at its Sept 20-21 meeting.

But after the Sankei Shimbun reported divisions of opinion in the nine-member Policy Board, the yen gained one per cent against the dollar in Tokyo on Thursday to 101.68 - rising from levels of around 104 last week - while stocks slid as a result of the yen's gain.…