BoJ raises inflation target to 2%

The Bank of Japan(BoJ) has taken more aggressive measures to kick-start growth than analysts expected by doubling its inflation target from 1% to 2% and pledging to pump billions of yen into the economy.

From January next year, when its current Y101trn of asset purchases is set to expire, the bank will begin buying Y13trn ($146bn) of mostly short-term government debt each month until its inflation target is met.  "The BoJ will pursue powerful monetary easing by maintaining virtually zero interest rates and purchases of financial assets as long as it deems appropriate," it said. It plans to achieve a rate of 2% inflation "at the earliest possible time", in a more concrete strategy aimed at replacing the bank's existing "goal" for price stability over the medium to long-term, the Financ...