Bank of Japan pledges unlimited easing, commits to price goal
pursue structural reforms to help Japan escape deflation and pledged to maintain fiscal discipline. Economics Minister Akira Amari attended the BOJ meeting to represent the government's views.
The yen has lost 13 percent against the dollar in the past two months to hit a two-and-a-half-year low on expectations of bolder central bank action. Tokyo stocks have gained a fifth on the view the weaker yen will boost the export earnings of the likes of Nissan Motor Co and Canon Inc .
The yen's declines, however, have drawn complaints from countries like Russia and Germany, worried that it could set off destabilising currency devaluations.
In a sobering reminder that Japan still faced an uphill battle in pulling out of more than a decade of low-grade deflation, the BOJ's updated economic forecasts showed core consumer prices inching down in the current fiscal year and up only 0.9 percent in the fiscal year ending in March 2015.
"Headline says core inflation at only 0.9 percent in 2014 so when will they meet their inflation target of 2 percent?" asked Joseph Capurso, currency strategist at Commonwealth Bank Of Australia in Sydney.
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