Bank of Japan Keeps Loose Monetary Policy

Global Business

Despite the fact that the sale tax increase will cause a short-term drop in spending, the Bank of Japan says the economy will continue to improve.

The Bank also left its monetary policy unchanged; leaving its benchmark interest rate near zero and expanding the monetary base by as much as 680 million dollars a year.

The bank will also continue buying government and corporate bonds, Exchange Traded Funds and Real Estate Investment Trusts at the same annual rate.

Bank of Japan Keeps Loose Monetary Policy

Bank of Japan Keeps Loose Monetary Policy

Despite the fact that the sale tax increase will cause a short-term drop in spending, the Bank of Japan says the economy will continue to improve.

Policymakers say Japan`s moderate recovery is now an established trend which should continue even if this month`s sales tax rise from 5 to 8% causes a short term drop in spending.