The Bank of Japan held off on expanding its monetary stimulus program at its policy meeting on Friday. The board, voting 8-1 for the decision, believes that the economy can overcome the effect of China’s slowdown by its own without the stimulus. The central bank still maintains its pledge to increase its monetary base at an annual rate of 80 trillion yen ($660 billion) as falling energy costs, weak exports and a fragile recovery in household spending kept it from producing a sustained inflation rate of 2%. With weak demand in emerging Asian markets, and weak household consumption following an increase in the consumption tax from 5% to 8% last spring, the central bank has lowered its economic growth and inflation forecasts for the next two years.
Japan’s most recent quantitative easing program began in April 2013. Each month the central bank bought 7 trillion yen of government bond using electronically created money. Last October, considerably low inflation and consumer spending caused the Bank of Japan to go even further by revealing plans to increase their already massive quantitative easing program. Determined to avoid falling into a period of deflation again, it announced that it would raise the amount it injects into the system from 60-70 trillion yen a year previously to 80 trillion yen.
Peeranat expects to graduate with degrees in economics and statistics in May 2017. Outside of academics, he is a martial artist, having started Muay Thai at 15 and Judo at 17. He competed in tournaments at the high school level and once on the university level back in Thailand, If all works out, he will be getting into Brazilian Jiu-Jitsu someday.