BOJ expands stimulus again amid pressure from incoming PM

TOKYO (REUTERS) - The Bank of Japan eased monetary policy on Thursday by expanding its asset-buying and lending programme, a widely expected move in response to intensifying pressure from incoming premier Shinzo Abe to deliver bolder steps to beat deflation.

The central bank topped up its asset-buying and lending programme by 10 trillion yen (S$145 billion) to 101 trillion yen by a unanimous vote, expanding stimulus for the third time in the past four months.

It also said the board would review at its next policy-setting meeting in January its guidelines for medium- and long-term price stability, which is now set in a range of zero to 2 per cent consumer inflation.

As widely expected, the BOJ maintained its overnight call rate target at a range of zero to 0.1 per cent by a unanimous vote.