• Kyodo

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The Bank of Japan is likely to keep unchanged its monetary policy at a two-day meeting starting Tuesday as it assesses the effects of the additional easing decided at its previous meeting, sources said.

The central bank is also likely to maintain its assessment of the domestic economy, saying it has continued to “recover moderately,” the sources said Saturday.

At its Oct. 31 meeting, the BOJ Policy Board surprised financial markets by announcing additional monetary easing measures, expanding the aggressive quantitative easing steps adopted in April 2013.

The bank said it will provide more liquidity to the economy for base money to increase at an annual pace of about ¥80 trillion, up from ¥60 trillion to ¥70 trillion, to underpin the country’s economy, which has been hit by the April tax hike.

At the two-day meeting, the board is expected to assess how the additional easing affected the views of consumers and companies in regards to prices, as well as financial markets and economic conditions. The bank is unlikely to change its view that the economy is in a virtuous recovery cycle, supported by improvements in employment and wages.

Since four of the board’s nine members opposed last month’s additional easing, their evaluations are likely to draw attention from market watchers.

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