The most likely options of increasing government bond purchases, and giving them a longer maturity, would fall short of what the U.S. is doing, while more drastic moves, such as buying foreign bonds or setting a timetable for meeting the 2 percent inflation target, would be unlikely to win support, he said.
This is "setting up the markets for some major disappointment," Jessop said in a commentary.
Once it became clear that the government intended to move ahead with its plan to nominate Kuroda, attention in Japan turned to who will replace him as head of the Manila, Philippines-based ADB, which is a regional development lender. Local reports suggested that the current vice finance minister in charge of international affairs, Takehiko Nakao, be named to take his place. However Japan would need to win support from other ADB member countries for that choice.
Japan's economy is struggling with the aftermath of the 2011 natural and nuclear disasters, rapid aging of its population and the biggest public debt burden among leading industrial economies.
Data from the Ministry of Economy, Trade and Industry released Thursday showed a glimmer of progress, with industrial production up 1 percent in January from the month before. But that was down 5.1 percent from a year earlier and below economists' forecasts for a 1.5 percent month-on-month increase. Retail spending dropped 1.1 percent in January from a year earlier, despite higher spending on food and beverages, the ministry reported earlier.
The ministry cited rising shipments of vehicles, iron and steel and electronics equipment, and of semiconductors and auto parts as the main factors behind the increase from the previous month.
So far, the economy has shown only scant signs of recovery, and that thanks largely to stronger demand overseas as the global economy has gradually improved and the Japanese yen has weakened, helping make exports from Japan more price competitive in overseas markets.
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