RPT-BOJ holds off on easing policy as yen stable post-Fed

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TOKYO, Nov 5 (BestGrowthStock) – The Bank of Japan on Friday kept
interest rates at zero and held off on easing monetary policy, as
the Federal Reserve’s bond buying plan did not trigger yen gains
sharp enough to warrant an immediate policy response.

The central bank also said it would buy exchange-traded funds
(ETF) linked to the Topix (.TOPX: ) and the Nikkei 225 (.N225: )
stock average, and buy real estate trust funds (REITs) rated AA
or higher.

The BOJ said it would begin buying government bonds under its
new 5 trillion yen ($62 billion) asset-buying scheme at the
beginning of next week. That will be followed by purchases of
other assets, it added.

As widely expected, the BOJ kept interest rates unchanged at
a range of zero to 0.1 percent by a unanimous vote.

Governor Masaaki Shirakawa will hold a news conference, with
his embargoed comments to come out sometime after 4:15 p.m. (0715
GMT).

The BOJ last month surprised markets by pegging rates
virtually at zero and pledging to pump more money into the
economy with a 5-trillion-yen asset buying scheme that targets
government bonds and corporate debt.

It pushed forward its November rate review to this week from
later this month to speed up the launch of the asset buying
scheme, and said it would announce details of its buying of ETFs
and REITs.

The rescheduled BOJ meeting came a day after the Federal
Reserve decided on a controversial new policy of committing to
buy government bonds to help an anaemic U.S. economy.

Markets had expected the BOJ to hold off on easing policy
further unless the Fed’s move triggered a sharp spike in the yen
accompanied by steep declines in Tokyo share prices.

Still, Shirakawa has said the BOJ is ready to pump more money
into the economy by expanding the size of its asset buying fund
if economic conditions deteriorate.
($1=80.72 Yen)
(Reporting by Leika Kihara, Rie Ishiguro; Editing by Edmund
Klamann)

RPT-BOJ holds off on easing policy as yen stable post-Fed