The Bank of Japan maintained record stimulus to keep stoking inflation and boost economic momentum that's been sapped by a higher sales tax.
The central bank kept its pledge to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen ($667 billion), the bank said in a statement on Thursday, in line with all 31 economists surveyed by Bloomberg News.
Governor Haruhiko Kuroda's bid to spur faster price gains is facing stiffer headwinds after the levy hike triggered the steepest contraction since the March 2011 earthquake. Housing investment has continued to fall following the April increase while production has shown some weakness, the BoJ said in a statement.
"The wind is turning against the BoJ," said Tsuyoshi Ueno, an economist at NLI Research Institute in Tokyo, before Thursday's decision.
The central bank kept its pledge to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen ($667 billion), the bank said in a statement on Thursday, in line with all 31 economists surveyed by Bloomberg News.
Governor Haruhiko Kuroda's bid to spur faster price gains is facing stiffer headwinds after the levy hike triggered the steepest contraction since the March 2011 earthquake. Housing investment has continued to fall following the April increase while production has shown some weakness, the BoJ said in a statement.
"The wind is turning against the BoJ," said Tsuyoshi Ueno, an economist at NLI Research Institute in Tokyo, before Thursday's decision.