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The Central Bank of Japan resisted on pressure

ForexZig.com October 5, 2012
The Central Bank of Japan

The Central Bank of Japan

On Friday, the Central Bank of Japan left its program of purchasing assets and target interest rate unchanged, bearing with the pressure from the Government to do more, in order to pull out the country from the era of falling prices.

The Central Bank, which last month had to increase the size of its asset purchases by 10 trillion yen (one hundred and twenty-seven billion U.S. dollars) to 80 trillion, confirmed at the end of the two-day meeting, that it will relieve politics in a continuous manner, with constantly increasing outstanding amount of quantitative stimuli.

The Bank also kept its interest rate target range of 0 to 0.1%, according to the previous pledge to keep rates stable, until price stability occurs. The decisions were made unanimously.

The Central Bank of Japan said it expects the consumer price inflation to remain at zero for this present moment, despite the increasing pressure.
The Minister of Economy and Fiscal Policy Seiji Maehara, who seeks a powerful monetary policy by the Central Bank, recently launched the idea of buying foreign bonds by the Central Bank.

The dollar fell against the yen, as did the Japanese shares, after the announcement of the decision.
Dollars could be bought for 78.27 yen, in comparison with about 78.57 yen before the decision.

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