1st LD: Bank of Japan further eases monetary policy

The Bank of Japan (BOJ) on Friday said it would implement new monetary easing measures amid projections the central bank will not clear its 2 percent inflation goal.

While delaying the timing of its 2 percent inflation goal, the central bank also cuts its inflation target for fiscal year 2016, stating it now expects CPI to increase 0.8 percent.

The BOJ also said it plans to introduce a negative interest rate from next month, as falling oil prices have severely hampered the bank's reflationary efforts.

While the European Central Bank (ECB) has already plunged into negative interest rates, the BOJ initially maintained it was reluctant to follow suit.

The bank's decision follows a raft of economic data released by the government here this morning that missed market expectations.

A slump in factory output and a decline in household spending, as well as consumer prices in December edging up only 0.1 percent, while CPI for 2015 remaining largely flat, painted a glum outlook for Japan's economy. Endit