Investing.com - The Bank of Japan increased its buying of exchange traded funds to ¥6 trillion from ¥3.3 trillion as part of a move to ease policy further and spur the economy as downside risks to the economy remain, but held other policy levers steady.
"The BoJ believes that monetary policy measures and the government's initiatives will produce synergy effects on the economy," the central bank said in a statement.
Investors had speculated about a further move downward in negative interest rates from 0.1% on some deposits held with the central bank, but the BoJ held pat on that and the current pace of asset purchases at ¥80 trillion annually.
Prime MInister Shinzo Abe unveiled a broad ¥28 trillion stimulus plan on Wednesday, Reuters reported that the Japanese government may only provide as much as ¥7 trillion in direct fiscal stimulus.
But speculation remains that the Japanese central bank could feel added pressure to lower interest rates deeper into negative territory and on Friday Governor Haruhiko Kuroda asked staff to examine the impact of negative rates.