BoJ sees falling prices, will buy corporate bonds

Prices will fall in the world's second-largest economy in 2009 and 2010, senior officials at the Bank of Japan predict. The central bank also announced it would buy corporate bonds and begin purchases of commercial paper later this month.

Forecasts released Thursday show the central bank's eight board members, on average, see deflation of 1.1% in the year to April 2010 and deflation of 0.4% in the year to April 2011 for CPI inflation excluding food. Predictions ranged from -1.3% to -0.8%

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