BOJ cuts inflation forecast, expands loan scheme instead of QQE
Reuters - Jan 20, 2015
The Bank of Japan cut next fiscal year's inflation forecast on Wednesday and expanded a loan scheme aimed at boosting lending, hoping to deflect criticism it is sitting idly by as a slump in oil prices pushes inflation further away from its target.
As widely expected, the BOJ held off on expanding its massive stimulus program and maintained its pledge to increase base money at an annual pace of 80 trillion yen ($678 billion) through buying government bonds and risk assets.
In a review of its long-term estimates, the BOJ cut its core consumer inflation forecast for the year beginning in April to 1.0 percent from 1.7 percent projected three months ago.
