So far, its all talk, little action. I can’t blame Japanese politicians for objecting to accusations of inciting a currency war. All they’ve done is open their mouths. The BOJ has not backed up the politicians’ words with much in the way of action.
BOJ’s open-ended money easing policy disappoints market
This article bluntly states the problems with Tuesday’s BOJ’s announcement. Its nothing we don’t already know :
the policy is seen as nothing less than a halfhearted effort by market analysts who say it will not lead to 2 percent inflation.
On bond purchases:
even if the BOJ purchases 13 trillion yen in government bonds every month … decreases due to expiry will leave a monthly net increase of only slightly shy of 1 trillion yen on average…Monthly net increases currently average slightly less than 3 trillion yen. Despite the blurb of open-ended easing, the increase in the outstanding cash infusion will slow sharply to one-third of the current rate.
