Japanese stocks rise after BoJ decision

Japan-Japanese-Flag-700x450.jpgShares in Japan reached a two-month high after the Japanese central bank decided to stick to its current monetary easing policy.

The Nikkei 225 closed up 0.78 per cent at 19,083 points after an initial fall of more than 0.4 per cent when the decision was announced.

As a result of the central bank’s meeting today, the new aggressive asset purchase started in October 2014 will remain at its annual pace of 80 trillion yen ($432bn).

The inflation target of 2 per cent was also postponed by the central bank amid low energy costs, weak exports and a slow recovery in consumer spending.

Forecasts for economic growth for the year to March 2016 were also lowered to 1.2 per cent from 1.7 per cent.

The central bank’s governor Haruhiko Kuroda said inflation target timing had been delayed “largely due to the effect of energy price falls”, the BBC reports.

Consumer prices fell 0.1 per cent in the year to September, while household spending declined 1.3 per cent from a year earlier, official figures from the central bank show.