The Bank of Japan held off from more easing after adding to stimulus last month, preserving its policy firepower despite increased political pressure and signs of an economic contraction.
The BOJ kept its asset-purchase fund, the main policy tool amid near-zero rates, at ¥55 trillion, the bank said in a statement Friday. The outcome was expected by all 20 economists surveyed by Bloomberg News.
Attention now turns to the next meeting on Oct. 30 as Morgan Stanley and Credit Suisse AG forecast two straight quarters of economic contraction through the yearend. Economic and fiscal policy minister Seiji Maehara attended Friday's BOJ meeting, the first minister to do so in more than nine years, adding to pressure on BOJ Gov. Masaaki Shirakawa.
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