BoJ announces $130bn additional monetary easing

TOKYO: The Bank of Japan on Tuesday further eased monetary policy, increasing its asset purchase programme by 10 trillion yen ($130 billion) to about 65 trillion yen, as it looks to end deflation.

It also said its policy board voted unanimously to keep the key interest rate unchanged at between zero and 0.1 percent.

"For the time being, the bank will pursue powerful monetary easing by conducting its virtually zero interest rate policy and by implementing the Asset Purchase Program mainly through the purchase of financial assets," the BoJ said in a statement.

The easing, which follows a similar step in October, is intended to help nudge the year-on-year inflation rate to 1.0 percent, the bank said.

"The outlook for Japan's economy continues to entail high uncertainty regarding the prospects and outcomes of the European debt problem, the supply and demand balance of electricity and the effects of the yen's appreciation," it said.

"The goal of overcoming deflation will be achieved through such efforts to strengthen growth potential and support from the financial side," the bank said.

Copyright AFP (Agence France-Presse), 2012