Bank of Japan Steps Up Stimulus

Central bank doubles its bond purchases in first Kuroda easing salvo.

Bank of Japan Governor Haruhiko Kuroda began his campaign to end 15 years of falling prices by doubling monthly bond purchases in a bid to reach 2 percent inflation in two years.

The BOJ will purchase 7.5 trillion yen ($78.6 billion) of bonds a month and double the monetary base in two years, the central bank said in Tokyo today. HSBC Holdings Plc. and Nomura Securities Co. said the easing is the nation’s biggest yet.

Banknote Rule

Under a so-called banknote rule, the BOJ had pledged to keep the value of its bond holdings below the amount of cash in circulation, excluding securities held under its asset-purchase program. That guideline is “temporarily suspended,” the central bank said.

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