Bank of Japan stands pat, offers bleaker view on exports and output

A pedestrian walks past the Bank of Japan building in Tokyo, in this May 22, 2013
A pedestrian walks past the Bank of Japan building in Tokyo, in this May 22, 2013PHOTO: REUTERS

TOKYO (REUTERS) - The Bank of Japan kept monetary policy steady on Tuesday (Sept 15) but warned that the country's exports and output were feeling the pinch from slowing demand in emerging markets.

As widely expected, the BOJ reiterated its pledge to increase base money, or cash and deposits at the central bank, at an annual pace of 80 trillion yen (S$930 billion) through purchases of government bonds and risky assets.

The policy board decision was made by an 8-1 vote.

"Japan's economy has continued to recover moderately but exports and output are affected by the slowdown in emerging economies," the BOJ said in a statement announcing the decision.

It also cut its assessment of exports and factory output, saying they are flat.

BOJ Governor Haruhiko Kuroda will hold a news conference at 3:30 p.m. (0630 GMT) to explain the policy decision.

The BOJ has kept policy unchanged since expanding its stimulus programme in October last year.