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BOJ keeps record stimulus as Japan crawls out of recession

Central bank to boost monetary base by 80 trillion yen a year

Tokyo

THE Bank of Japan (BOJ) maintained unprecedented monetary stimulus, as governor Haruhiko Kuroda aims to stoke a recovery from recession and counter a slowdown in inflation.

The central bank will boost the monetary base at an annual pace of 80 trillion yen (S$912 billion), it said in a statement on Wednesday in Tokyo, as forecast by all 35 economists surveyed by Bloomberg News.

Stocks at seven-year highs and a pick-up in exports that is supporting production reduce the urgency for additional easing. Still, a 50 per cent drop in oil prices since June threatens to trigger a bout of deflation from July to September, hampering the central bank's efforts to generate 2 per cent consumer price gains,...

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