The Bank of Japan on Friday “unexpectedly” announced additional stimulus measures, bolstering its asset purchases for the first time in over a year and a half, as its 2% inflation target looks increasingly untenable.
Tokyo, Muharram 7, 1436, Oct 31, 2014, SPA — The Bank of Japan said Friday it had decided to introduce additional monetary easing steps to prop up the world’s third-largest economy.
According to dpa, the bank said government boosts to the monetary base will increase from current levels by 10 trillion yen to 20 trillion (91 billion to 182 billion dollars) per year, to an annual pace of 80 trillion yen.
The bank’s nine-member policy board was split over the move, which was supported by five members including Governor Haruhiko Kuroda and his two deputies.
The central bank also said on Friday it would buy more government bonds from financial institutions, two days after the US Federal Reserve decided to end its bond-buying programme.
“Japan’s economy has continued to recover moderately,” the bank said in a statement.
Even before Japan’s central bank Friday ramped up its big monetary stimulus program, it was testing the boundaries of monetary policy. Under the easing plan launched a year and a half ago, its balance-sheet assets, as a percentage of Japan’s economy, were nearing 60%, considerably higher than anything ever attempted by the U.S. Federal Reserve, the Bank of England, and the European Central Bank
Japan’s inflation rate fell to its lowest in nearly a year and a measure of job creation worsened for the first time in more than three years, highlighting the divergence between developments in the economy and policy makers’ optimistic projections.
The Nikkei rose almost 5% at the thought of Bank of Japan liquefying it’s economy.
The JUSD/JPY cross?
All together now!
Yes, the world is thrilled that Japan is stepping into the breach and liquefying their economy now that The Fed has announced the end of QE3.
Senator Kelly from “X-Men” imitating the Bank of Japan.