Indications of fortitude within Japan's economy trumped perils presented by the sovereign debt crisis tearing through the euro zone and prompted the Pacific Rim nation's central bank to decline widening monetary stimulus, Bloomberg reports.
While asset purchasing was increased to the yen equivalent of $564 billion by the Bank of Japan, the facility for disbursing loan money dropped from 30 trillion yen to 25 trillion yen. The decision in the nation hosting the globe's third-largest economy came after the central Bank of South Korea slashed interest rates.
"This is simply a technical move that shouldn't be considered to be monetary easing," former bank official and present chief economist Masaaki Kanno with JPMorgan Securities Japan in Tokyo told Bloomberg. "Some market participants will be disappointed to see that the BOJ didn't ease policy."
The Bank of Japan earlier this month increased its economic assessment of the nation, representing the first time that has occurred in more than 24 months.
Reuters reports the central bank indicated that the economy of Japan, which trails those of China and the U.S., is gaining due to strong domestic demand.