3 Reasons The Bank Of Japan Disappointed Investors Today

Japanese Botanical Gardens

Photo: Bogdan Migulski via Flickr

The big story of the day: Late Monday night (US time), the Bank of Japan announced a new 2% inflation target, and an unlimited bond purchase plan.But markets have mostly been disappointed.

We already gave you the explanation from SocGen’s Kit Juckes.

Here’s Nomura’s Shuichi Obata on the same:

Although the introduction of an inflation target was in line with market expectations, the markets are likely to have been disappointed by the details of the open-ended asset purchasing program, namely that: (1) it only starts in 2014; (2) monthly purchases will be offset by redemptions, such that net growth in the asset purchasing program is likely to be only around ¥10trn by end-2014; and (3) the BOJ does not envision any net growth in the size of the asset purchasing program from 2015.

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