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Bank of Japan pledges unlimited easing, commits to price goal

Published on Jan 22, 2013 2:22 PM
 
Japan's Prime Minister Shinzo Abe speaking to reporters after hearing a briefing by Finance Minister Taro Aso, Bank of Japan Governor Masaaki Shirakawa and Economics Minister Akira Amari in Tokyo on Tuesday. Mr Aso said that the government highly appreciated the Bank of Japan's decision to switch to an open-ended commitment to buying assets next year and double its inflation target to 2 per cent. -- PHOTO: REUTERS

TOKYO (REUTERS) - The Bank of Japan announced on Tuesday its most determined effort yet to end years of economic stagnation, saying it would switch to an open-ended commitment to buying assets next year and doubling its inflation target to 2 per cent.

It promised to reach the inflation goal "at the earliest possible time."

The steps mark a break with an earlier policy of topping up a lending and asset buying programme launched in October 2010 and follow weeks of relentless pressure from new Prime Minister Shinzo Abe for a greater push to beat deflation and lift the economy out of recession.

In a joint statement with the government, it affirmed a well-flagged move to commit to the inflation target. Consumer price inflation has reached 2 per cent in only a handful of months since the late 1990s.

 
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