The Bank of Japan on Tuesday stepped up its monetary easing measures, breaking with precedent to announce an explicit consumer price inflation target of 1 percent, while plowing a further ¥10 trillion into its asset purchase program.
The BOJ will continue its virtually zero interest policy until the new 1 percent target is achieved, the central bank indicated in a statement after its Policy Board meeting ended.
"For the time being, the Bank will pursue powerful monetary easing by conducing its virtually zero interest rate policy and by implementing the Asset Purchase Program . . . with the aim of achieving the goal of 1 percent in terms of the year-on-year rate of increase in the CPI (consumer price index)," the BOJ said.