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BOJ policymaker promises to maintain huge bond buying

Makoto Sakurai, Bank of Japan board member told that the major bank will keep buying huge amounts of government bonds even under a fresh policy framework targeting interest rates, thus shrugging off the view that its bond-buying program was close to a limit.

However, the former academic urged the government as well as companies to do more to help Japan’s major financial institution to beat subdued inflation and also growth in Japan by simply raising wages and promoting innovation.

The remarks by Sakurai, normally regarded as among the most vocal advocates of aggressive easing in the nine-member board, dared to underscore a dominant market view that the major bank is done expanding its stimulus for the time being.

In September, the BOJ switched its policy objective to interest rates from the pace of money printing, after years massive asset purchases failed to get the national economy out of stagnation and speed up inflation to its 2% target.

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