2014.11.1904:33:56UTC+00Kuroda secures safer majority on Bank of Japan policy vote

Governor Haruhiko Kuroda of the Bank of Japan (BoJ) won a larger majority today among members of the central bank’s policy board to continue the country’s record easing following its decline into a recession.

The BoJ voted 8 to 1 today to expand its monetary base by an annual amount of 80 trillion yen, or $683 billion, compared to the close 5 to 4 decision during last month’s meeting. Prime Minister Shinzo Abe has just announced his intent to delay a second increase to Japan’s sales tax to 10% for 18 months while Kuroda introduces an unprecedented asset purchasing program.

The first increase from 5% to 8% was implemented last April which caused Japan’s economy to stagnate and fall into its fourth recession since 2008. Japan’s economy shrank by 1.6% last quarter to follow up on the 7.3% contraction in the period of April to June.

Economist Naomi Muguruma from Mitsubishi UFJ Morgan Stanley Securities Co. says that, “Kuroda must be relieved. He’ll have to consider more stimulus, probably in the second half of next fiscal year, but for now he doesn’t have to worry about not winning his way. He can enjoy safe sailing.”

The Japanese yen has fallen in value by around 7% since October 31st when the BoJ expanded its stimulus and is now trading above its lowest level against the dollar in seven years.