Investing.com - The Bank of Japan eased monetary policy on Friday in a 5 to 4 board vote to increase the monetary base through government bond purchases and extended maturities.
"The bank will conduct money market operations so that the monetary base will increase at an annual pace of about ¥80 trillion," the BoJ said, raising the amount from the previous target of about ¥60 to ¥70 trillion.
The additional easing under the current policy framework set in April 2013 was narrowly decided by a 5-to-4 vote. Board members Yoshihisa Morimoto, Koji Ishida, Takehiro Sato and Takahide Kiuchi voted against the action.
The BoJ will also increase its purchases of Japanese government bonds to about Y80 trillion at an annual pace form about ¥50 trillion previously. The average remaining maturity of the bank's JGB buying will now be extended to about seven to 10 years from about seven years.
The bank's JGB holdings are now estimated to rise to ¥200 trillion at the end of 2014 from ¥142 trillion at the end of 2013.
The board also decided to increase its investment in risk assets. It will purchase exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs) so that their amounts outstanding will rise at an annual pace of about ¥3 trillion and ¥90 billion, triple compared to the previous targets.
It will add ETFs that track the JPX-Nikkei Index 400 to its shopping list.
Under the current easing framework aimed at anchoring 2% inflation in about two years from April 2013. "Japan's economy has continued to recover moderately as a trend and is expected to continue growing at a pace above its potential," the BoJ said after Friday's meeting.
"However, on the price front, somewhat weak developments in demand following the consumption tax hike and a substantial decline in crude oil prices have been exerting downward pressure recently."