Izuru Kato News
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The Bank of Japan held off from monetary easing after expanding asset purchases in September and October, switching the focus to a December meeting where more measures are forecast to shore up a shrinking economy.
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The Bank of Japan unexpectedly expanded its asset-purchase fund by 10 trillion yen ($126 billion), seeking to counter an increasing danger of contraction in the world’s third-largest economy.
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The Bank of Japan will probably take new easing steps next week, a survey of economists showed, as pressure builds on the central bank to do more to end deflation and revive the economy.
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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.
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The euro advanced from a one-month low versus the dollar after Standard & Poor’s clarified that France’s credit rating remains AAA, easing concern that a crisis was imminent in the region’s second-largest economy.
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The Bank of Japan’s policy board unanimously voted to maintain monetary policy even after a report yesterday showed the country slipped into a recession following a record earthquake.
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Bank of Japan policy makers rejected a proposal by a deputy governor to expand its asset- buying program by 5 trillion yen ($61 billion) to cope with last month’s record earthquake.
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Japan’s Ministry of Finance said 692.5 billion yen ($8.4 billion) was sold last month, showing the government’s efforts to bring the currency down from a postwar high that threatened a recovery from its biggest-ever earthquake.
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The Bank of Japan kept monetary policy unchanged after adding 10 trillion yen ($130 billion) of stimulus last month to combat a yen near a postwar high.
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The Bank of Japan refrained from expanding monetary easing to counter deflation, resisting pressure from lawmakers who five days ago rejected a nominee for the policy board.
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