Posted by: youngragingbull | January 22, 2013

Bank of Japan aims for 2% inflation target

The Bank of Japan on Tuesday formally adopted a 2% inflation target in a major shift in its policy stance, and said it will continue its asset purchases on an “open-ended” basis to further expand its monetary stimulus.

At the conclusion of its two-day policy meeting, the central bank said its “price stability target” of 2% year-on-year increase in consumer prices will replace its previous “goal” of a 1% increase in inflation.

Under its open-ended asset purchases, the Bank of Japan said it will pursue “aggressive monetary easing” aimed at achieving its 2% price stability target, “through a virtually zero interest rate policy and purchases of financial assets,” for as long as the bank judges it appropriate.

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