Bank of Japan unmoved in September

Chris McGrath/Getty Images

As they have done so since October last year, the Bank of Japan kept monetary policy steady at its September policy meeting.

Voting 8-1 for the decision, the bank pledged to increase the nation’s monetary base, largely through the purchase of Japanese government bonds, at an annual pace of about 80 trillion yen.

The decision was widely expected by the markets.

Kiuchi was the one dissenter, again, calling for the bank to increase the monetary base at an annual pace of 45 trillion yen.

“Japan’s economy has continued to recover moderately but exports and output are affected by the slowdown in emerging economies,” the BOJ’s statement read.

The bank also cut its assessment of exports and factory output, calling them “more or less flat”, blaming weakness in emerging markets.

All attention will now turn to BOJ governor Haruhiko Kuroda’s press conference scheduled for 3.30pm in Tokyo (4.30pm AEST).

Despite the decision being widely expected by analysts, the USD/JPY is now trading below 120 having been as high as 120.65 earlier in the session. The Nikkei 225, up around 2% prior to the announcement, has also trimmed its advance to just 0.26%.

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