Bank of Japan 'disappoints' with modest easing

Increases ETF purchase programme

The Bank of Japan (BoJ) voted to maintain interest rates at -0.1% and left its government bond purchasing programme unchanged following a two-day meeting, defying market expectations of a heavy additional stimulus package.

However, the central bank said it would increase ETF purchases to a pace which would up the amount outstanding to ¥6trn a year, up from ¥3.3trn a year, and will also double its US-dollar lending programme to $24bn. The Japanese central bank voted 7-2 to leave interest rates at -0.1%, the level it first introduced in January this year. In a statement, the central bank flagged the recent Brexit vote, slowdown in emerging economies and volatile markets as reasons for holding rates. It said the move was aimed at "preventing these uncertainties from leading to deterioration in business ...