Bank of Japan board members said the central bank should avoid getting too involved in the allocation of capital in its latest effort to spur lending and economic growth, a record of their April 30 meeting showed.
The Bank of Japan expanded its plan for government-bond purchases by 10 trillion yen ($124 billion) after the world’s third-largest economy showed signs of slowing and lawmakers pressed for more aggressive steps.
The Bank of Japan poured a record 15 trillion yen ($183 billion) into the world’s third-biggest economy today as the strongest earthquake in the nation’s history triggered a plunge in stocks and surge in credit risk.
The Bank of Japan will expand monetary stimulus at next week’s policy meeting to show a commitment to ending deflation, according to the only analyst in a Bloomberg News survey who predicted last month’s easing.
Bank of Japan officials are considering maintaining a large balance sheet for the central bank even after it achieves its inflation target, reducing the risk of a surge in long-term bond yields, according to people familiar with the discussions.
Japan’s Prime Minister Naoto Kan called for a national debate on raising the 5 percent sales tax during his first press conference this year, one that touched on regional security and whether a top party member should resign.