The Bank of Japan on Tuesday refrained from boosting stimulus even after the economy shrank in the last quarter, betting that a resumption in growth will be enough to rekindle inflation.
The move by Gov. Haruhiko Kuroda and his colleagues leaves the onus on Prime Minister Shinzo Abe's government to compile a stimulus package to boost what evidence indicates is a lackluster recovery in the second half of the year so far.
The focus now turns to whether Kuroda will make any hints about his willingness to do more to head off risks from weak consumer spending and production at home to a slowdown in China. With the BOJ's inflation gauge at zero, some officials at the bank see a growing chance of another delay in reaching their 2 percent price target.
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