BOJ decides to avoid further monetary easing

FACED with increasingly difficult policy choices, the Bank of Japan's (BOJ) Policy Board decided yesterday to avoid further monetary easing in the run-up to next month's scheduled sales tax hike, which many fear could damage consumption and economic recovery in the country.

The policy-making body decided by a unanimous vote at the end of its latest two-day meeting to maintain its already super-easy monetary policy, rather than yielding to market expectations of further easing to counter any possible new slowdown.

Tokyo stocks consequently gave up gains earlier in the day as Asian shares in general strengthened, while the yen moved up slightly against the dollar and other currencies in the absence of further easing moves.