The BOJ have completed their meeting and are on the wires now.
Eases further
- Expands base money target to 80 trln yen
- Increases JGB buying by 30 trln yen per year
- To triple pace of annual buying of ETF, JREITS
- To make ETFs that track JPX Nikkei index 400 eligible for its buying
- To extend duration of JGBs it holds to about 7-10 years
- Decision on expanding base money target, extending duration of jgbs holdings made by 5-4 vote
- To maintain balance of its CP, corporate bond holdings
- Board members Morimoto, Ishida, Sato, Kiuchi voted against expanding base money target
- Board members Morimoto, Ishida, Sato, Kiuchi voted against extending duration of JGB holdings
- Pursuing QQE in an open-ended manner, releases estimates for its asset purchases for next year
- There were risks shift of deflation mindset may be delayed due partly to downward pressure on prices from oil price declines
Big news out of the BOJ. – This is an unexpected move, not expected by most of the market (nearly all). Market gets a ‘fail’ on this one (including yours truly).
Nikkei rockets higher
USD/YEN up toward 110 … and still climbing as I type
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Bank of Japan (BOJ) Governor Kuroda is due to give his post-meeting press conference later, scheduled at 0630GMT
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