The Bank of Japan expanded its asset-purchase program for the third time in four months, and will reconsider its objectives for inflation as incoming Prime Minister Shinzo Abe urges more action to end price declines.
Japan’s economy shrank almost 10 percent in the half decade since Shinzo Abe was last prime minister, as a soaring yen hollowed out manufacturing. Abe’s return may be exporters’ best chance yet to halt the damage.
The dollar may extend declines toward a record against the yen after sliding to a 15-year low as the Federal Reserve said it would maintain bond holdings, Barclays Bank Plc and JPMorgan Chase & Co. said.
Japan’s biggest corporations are weakening the yen through record takeovers of everything from a U.S. phone company to a Swiss drugmaker, after central bank Governor Masaaki Shirakawa’s attempts to halt the currency’s rise proved fleeting.
Japanese Prime Minister Yoshihiko Noda will dissolve parliament tomorrow, triggering an election that polls show his party will lose three years after ending the Liberal Democratic Party’s half-century grip on power.
Bank of Japan Governor Masaaki Shirakawa, who set the nation’s first inflation goal six months ago to halt a decade-long struggle with deflation, has failed to produce the weaker currency craved by exporters.