BOJ keeps loose money policy, says economy on mend

Staff Writer
Columbus CEO

TOKYO (AP) — Japan's central bank has opted to keep its ultra-loose monetary policy in place and says the economy is on track for a "moderate recovery."

The Bank of Japan ended a two-day policy meeting without any moves to step up bond purchases aimed at pumping some 60 trillion yen to 70 trillion yen ($600 billion to $700 billion) a year into the world's third-largest economy.

There had been some speculation that easing might be stepped up after the pace of economic growth fell by half to 1.9 percent in July-September.

BOJ members said they believed Japan was progressing toward an inflation target of 2 percent, despite weakness in exports. Some economists questioned whether higher prices are doing much to spur investment needed to sustain growth in the long term.