Bank of Japan set to ease monetary policy

18 December 2012

The Bank of Japan (BoJ) is set to implement further easing of the Japan's monetary policy later this week.

That is according to sources with knowledge of the matter, who have told Reuters that the central institution is looking to alter the direction of its policy after the country's general election, which took place on Sunday (December 16th).

Liberal Democratic Party candidate Shinzo Abe won the poll in convincing fashion and has therefore taken on the role of prime minister from Yoshihiko Noda, meaning he is now looking to push forward with his pre-election pledge of boosting Japan's economic performance.

Prior to the poll, Mr Abe said he intended to set the country's inflation target at two per cent and it has now emerged that he has informed BoJ governor Masaaki Shirakawa of this plan.

It is thought this will increase pressure on policymakers and insiders believe officials will react by boosting its monetary stimulus package sooner rather than later.

By Tony Aynsley

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