BOJ keeps policy steady even as Japan slides into recession

[TOKYO] The Bank of Japan kept monetary policy steady on Thursday, likely expecting that the economy will soon emerge from recession with a tight job market pushing up wages and underpinning consumption.

"Japan's economy has continued to recover moderately, although exports and production have been affected by the slowdown in emerging economies," the BOJ said in a statement, keeping its economic assessment unchanged.

The BOJ reiterated its pledge to increase base money, or cash and deposits at the central bank, at an annual pace of 80 trillion yen (S$920 billion) through purchases of government bonds and risky assets.

The policy board made the decision by an 8-1 vote.

BOJ Governor Haruhiko Kuroda will hold a news conference at 2:30 pm, Singapore time, to explain the policy decision.

The BOJ has kept monetary policy steady since expanding stimulus in October last year, even as slumping oil prices and weak exports push inflation further away from its target.

REUTERS