Japan's central bank expands asset buying program to spur economy
Date
12/18/2015 4:11:45 AM
(MENAFN- Kuwait News Agency (KUNA)) TOKYO Dec 18 (KUNA) -- Japan's central bank on Friday decided to expand its asset-purchase program in an effort to spur the country's economy.The Bank of Japan (BOJ) will launch a new program of purchasing exchange-traded funds (ETFs) at an annual pace of around JPY 300 billion (USD 2.5 billion) in addition to the current ETF purchase program at about JPY 3 trillion (USD 25 billion) annually according to a statement released after BOJ's two-day policy meeting.BOJ Governor Haruhiko Kuroda and his board colleagues also decided to extend the average maturity of the Japanese government bonds the BOJ buys to 7-12 years from 7-10 years and to increase its real estate investment trust purchases.The BOJ's new measures come as it has been struggling to achieve its 2 percent inflation target by next year chiefly due to decline in energy prices.Meanwhile BOJ policymakers maintained their assessment of the domestic economy saying it "has continued to recover moderately although exports and production have been affected by the slowdown in emerging economies." Japan's economy grew at an annualized pace of 1.0 percent in the July-September period. (end) mk.tg
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