The Bank of Japan doubled its inflation target to 2 per cent and made an open-ended commitment to buy assets from next year, surprising markets that had expected another incremental increase in its $1.1 trillion asset-buying and lending program.
But central bankers were divided on the new price target with two in the nine-member board voting against setting it at 2 per cent, underscoring the dilemma the BoJ faces as it struggles to beat deflation with its depleted policy arsenal.
The BoJ has been under relentless pressure from new Prime Minister Shinzo Abe for bolder action to overcome deflation and lift the economy out of recession.
Until today, the central bank had pledged to pump 101 trillion yen ($1.06 trillion) into markets with its asset-buying and lending program by the end of this year, but had made no commitment on whether to maintain the balance beyond 2014.
Read more: http://www.smh.com.au/business/world-business/japan-steps-up-fight-against-deflation-20130122-2d4mk.html#ixzz2IhfJPhG9
Gold protects Japanese savers from politicians and Central Bankers