BoJ eases policy for 2nd consecutive month The Bank of Japan has taken the rare step of easing monetary policy for the second month in a row, conceding that its 1 per cent inflation target would not be reached without more aggressive stimulus. The central bank expanded its asset-purchase programme by about Y11tn ($138bn) to Y91tn, mainly by adding Y10tn of government bonds and bills. It will also buy Y500bn of exchange traded funds, Y300bn of corporate bonds and Y100bn of commercial paper. The asset-purchase programme is the BoJ's key policy tool, with interest rates rooted near zero. In a sign of strong political pressure on monetary policy makers, the announcement was accompanied by a joint statement from the government and the BoJ, declaring that both sides "share the recognition that the critical challenge for Japan's economy is to overcome deflation as early as possible, and to return to a sustainable growth path with price stability." Economy minister Seiji Maehara, who sat in on policy makers" deliberations for a second successive meeting, described the statement as "unprecedented." The BoJ also announced the establishment of an unlimited special facility to stimulate bank lending, under which it will provide long-term funds at low interest rates. Tuesday's decision marks the first time the bank has eased policy in two successive months since May 2003.