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.