The Bank of Japan has said it will expand the country’s money supply, as it tries to stimulate growth in the world’s third-largest economy.
The central bank said it would boost its asset purchases, including Japanese government bonds, while pledging to meet a two percent inflation target within two years, aimed at reversing decades of falling prices.
The BoJ said it would “enter a new phase of monetary easing both in terms of quantity and quality”.
Among its purchases would be exchange-traded funds and longer-term bonds, with the latter aimed at pushing down long-term interest rates to encourage companies and individuals to borrow.
Japan’s economy has been battling more than a decade of falling prices.
New governor Haruhiko Kuroda had previously said he would do “whatever it takes” to drive growth.
“The BOJ will conduct money-market operations so that the monetary base will increase at an annual pace of about 60 trillion yen to 70 trillion yen,” the central bank said in a statement.
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