Bank of Japan Enlarges Toolkit as Inflation Goal Recedes
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The Bank of Japan added to its toolkit by abandoning a minimum return on bonds it purchases, a step that may ensure it meets targets for adding stimulus to the economy even as a goal of ending deflation remains out of reach.
The BOJ scrapped the requirement for regular purchases of government debt, currently set at 1.8 trillion yen ($23 billion) a month, and for notes that it accumulates under a 55 trillion yen asset-purchase fund. Policy makers also yesterday expanded the asset program by 10 trillion yen.