Bank of Japan's governor Shirakawa called an emergency meeting

Bank of Japan's governor Shirakawa called an emergency meeting

Bowing to government pressure, Japan’s central bank said Tuesday it would pump short-term funds into the country’s banking system in a renewed bid to kick-start lending and breathe life into the moribund economy.

But the Bank of Japan refused to increase its purchases of government bonds and engage in full-blown “quantitative easing,” as called for by government officials. The measured response raised questions about whether the central bank, reluctant to take orders from politicians on monetary policy, was merely maneuvering to get government officials off its back.