Haruhiko Kuroda, the new Governor of the Japanese central bank has announced his decision to expand the monthly bond purchases to twice its level in the country in order to boost the domestic economy.

The new governor is likely to take steps to aggressively ease the monetary policy in the country to boost the economic growth in the Japanese economy. Kuroda had promised earlier that he would take steps to address the deflation in the country if he has appointed as the Governor of the Bank of Japan (BOJ). He believed that BoJ has not purchased assets yet and should move to acquire assets to boost the Japanese economy.

Kuroda is heading his first meeting today and the board has relaxed a limit on bond holdings and dropped a limit on the maturities of debt that are acquired by the bank. The BOJ said in the Japanese capital that it will purchase 7 trillion yen or $74 billion of bonds every month. He is aiming to reach 2 per cent inflation in two years as part of the plan to reverse the trend of falling prices in more than 15 years in the world's third largest economy.

His views are mostly in line with that of Mr. Abe, who has been suggesting more aggressive monetary easing, higher stimulus spending and faster economic reforms.