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Bank of Japan boosts stimulus again

Bank of Japan boosts stimulus again
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The Bank of Japan has announced more economic stimulus. It will pump the equivalent of another 94 billion euros into the economy.

The central bank’s second monetary easing efforts in two months comes as Japan’s economy is picking up.

It was seen mainly as a symbolic response to politicians’ calls for more efforts to battle the long term deflation that has depressed consumption and business investment.

As expected, the central bank also extended the duration of government bonds targeted under its asset-buying scheme to three years from the current two years.

The BOJ revised up its economic and price forecasts in a semi-annual outlook report released on Friday, projecting consumer prices would rise 0.7 percent in the fiscal year 2013/14, with inflation reaching one percent some time thereafter.

But data released earlier on Friday showed consumer inflation rose just 0.2 percent in March from a year earlier, a sign Japan still had a long way to go to beat deflation.