BOJ keeps monetary policy steady; price forecast in focus

TOKYO, April 26 Fri Apr 26, 2013 12:40am EDT

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TOKYO, April 26 (Reuters) - The Bank of Japan kept monetary policy steady on Friday, a widely expected move after it unveiled aggressive stimulus measures earlier this month aimed at achieving its 2 percent inflation target in two years.

In a unanimous vote, the BOJ maintained its pledge to increase base money, or cash and deposits at the central bank, at an annual pace of 60 trillion yen to 70 trillion yen.

At the previous rate review on April 4, the BOJ eased policy by pledging to double the supply of money in two years by boosting purchases of government bonds and risky assets.

In doing so, it switched its policy target from the overnight call rate target to base money, a broad measurement of the amount of money the central bank pumps into the economy.

The BOJ will issue a twice-yearly outlook report with revised long-term economic and price forecasts at 3 p.m. (0600 GMT). Governor Haruhiko Kuroda will hold a news conference with his embargoed comments to come out any time after 4:15 p.m. (0715 GMT).

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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