TOKYO Oct 23 The Bank of Japan is leaning
toward easing monetary policy again next week, according to
sources familiar with its thinking, with policymakers
considering combining a further increase in its asset-buying
with other steps.
The central bank has been under renewed pressure to expand
monetary stimulus at its Oct. 30 rate review when it is expected
to cut its growth forecasts and push back the timing of hitting
its 1 percent inflation target.
Many central bankers are thus leaning toward action, the
sources interviewed in the past several days said.
The most likely option is a further 10 trillion yen ($126
billion) increase to the BOJ's asset buying and lending
programme that now aims to pump 80 trillion yen in financial
asset purchases and market operations by the end of next year.
The increase would mostly come in the form of government
bond buying but may include a small increase purchases of
exchange-traded funds (ETF) and real estate investment trusts
(REIT), they said.
"The BOJ shouldn't hesitate if there are risks that Japan's
recovery may be further delayed," said one source on condition
of anonymity due to the sensitivity of the matter.