The Bank of Japan on Tuesday kept its record stimulus unchanged and forecast inflation will pick up to its 2 percent price target.
The central bank stuck with its goal of an annual increase in the monetary base of between ¥60 trillion and ¥70 trillion, it said in a statement in Tokyo, as forecast by all 34 economists surveyed by Bloomberg News. Consumer prices excluding fresh food will rise 1.9 percent in the year starting April 2015, the median estimates of board members showed, matching its forecast three months ago.
Economists have pushed back projections for further easing, as Gov. Haruhiko Kuroda signals confidence in the bank's progress in driving inflation. With the economy forecast to rebound from a contraction last quarter triggered by the April consumption tax increase, Kuroda's task is to sustain momentum as rising prices and limited wage gains squeeze households.