The Bank of Japan (8301) expanded its asset-purchase program for the third time in four months, and will reconsider its objectives for inflation as incoming Prime Minister Shinzo Abe urges more action to end price declines.
The central bank expanded its asset-purchase fund to 76 trillion yen ($906 billion) from 66 trillion yen, according to a statement released in Tokyo today. The bank kept its credit lending program unchanged at 25 trillion yen.
The expanded purchases failed to halt gains in the yen, which reversed three days of declines today as investors sought a haven amid concerns at a stalemate in U.S. budget talks. Abe, whose party swept to victory in this week’s election, will have a chance to reshape the BOJ early next year when the terms of Governor Masaaki Shirakawa and his two deputies expire. He’s pressing for a 2 percent inflation target, compared with an existing 1 percent goal.
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