TOKYO—Japan’s central bank opted Friday for a modest expansion of its lavish monetary stimulus to help perk up sluggish growth and combat deflation.
The measures fell short of expectations among many investors for more aggressive action, but Bank of Japan Gov. Haruhiko Kuroda said there was more room to act if need be.
The Bank of Japan ended a policy meeting Friday by announcing it will expand purchases of assets from financial institutions to help inject more cash into the world’s third-largest economy and pursue its 2 percent inflation target.
It also plans a “comprehensive assessment” of the impact of the bank’s monetary easing on the economy, citing “considerable uncertainty” over the outlook for prices and global markets.
The central bank was under heavy pressure to act after earlier this week Prime Minister Shinzo Abe announced 28 trillion yen ($267 billion) in spending initiatives to help support the sagging economic recovery.
The recent vote by Britain to leave the European Union has added to the uncertainties clouding the global outlook at a time when Japan’s recovery remains in question.
