Japan's central bank has surprised market-watchers, deciding to expand its massive asset purchase program as the country's economic growth and inflation have not improved as much as expected.
The BoJ will buy Japanese government bonds from financial institutions to maintain an annual increase of about 80 trillion yen or over 730 billion dollars.
That is up about 30 trillion yen.
BoJ Governor Haruhiko Kuroda.
"There is a risk which might slow down the hard-fought gains in changing mindsets stuck in deflation. I can say that we are at the moment of truth, the critical moment, in our process of shaking free from deflation … As the Bank of Japan, we decided it was appropriate to expand the monetary easing to pre-emptively prevent the manifestation of this risk and maintain the positive upward momentum which is forming."
Kuroda also re-affirmed the bank's goal of pushing consumer price inflation to 2 percent next year.
The central bank will also triple its purchases of exchange-traded funds and real-estate investment trusts and buy longer-dated debt.
Analysts previously thought the central bank would maintain its level of asset purchases.
The Bank of Japan says it is worried as weak domestic demand following a tax hike in April and sharp falls in oil prices are weighing on consumer prices.
