December 20, 2012
TOKYO — The Bank of Japan said Thursday that it would expand asset buying and lending, and hinted at a review of its target of 1 percent inflation in the face of pressure from the presumptive incoming prime minister, Shinzo Abe, who wants bolder action against deflation.
The central bank said it would discuss the target at its next meeting, in January, after Mr. Abe takes office. The bank also increased its asset purchase and lending program by ¥10 trillion, or $119 billion, to ¥101 trillion, a widely expected move that is expected to pump more money into the Japanese economy.
“The Bank recognizes that Japan’s economy faces the critical challenge of overcoming deflation as early a possible,” it said in a statement after wrapping up a two-day policy meeting. It kept its benchmark interest rate steady at a range of zero to 0.1 percent.