BOJ awaits outcome of key Fed meeting

Tokyo

MEETING in the shadow of this week's critical meeting of the US Federal Reserve's rate-setting Open Markets Committee, the Policy Board of the Bank of Japan (BOJ) on Tuesday maintained its monetary easing stance.

The Fed's decision could set the stage for further policy action by the BOJ and other central banks. If the Fed decides to begin raising rates, currency and stock markets will need to adapt to a "new reality", and the BOJ and others may need to adjust their policies, said analysts.

But if the Fed holds off action for now - as it is expected to do - the sense of uncertainty will be prolonged, and central banks may need to take stabilising actions…