Nikkei closes flat as BoJ is believed to implement monetary easing
City Index December 11, 2012 4:15 PM
<p>The Nikkei was flat at close of play today as sources reveal the central bank of Japan could implement monetary easing next week.</p>
The Nikkei 225 in Japan has closed flat today (December 11th) as sources suggest the Bank of Japan (BoJ) is likely to implement another round of monetary easing next week.
Reuters reports that individuals close to the central bank believe looming risks such as the fallout from the US fiscal cliff and weak Chinese expansion continue to shroud the future of the world's number three economy in uncertainty, prompting the institution to expand its asset-buying and lending programme.
Indeed, the sources suggested that the monetary easing scheme – currently set at 91 trillion yen (£686 billion) by a further five-to-ten trillion when policymakers meet on December 19th and 20th.
Japan's general election takes placed on December 16th and the Liberal Democratic Party is tipped to win.
If so, leader Shinzo Abe is likely to call on the BoJ to take steps such as unlimited monetary easing to achieve two per cent inflation.
At 10:20 GMT, the Nikkei 225 was flat at 9525.3 points.
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