BOJ Statement on Monetary Policy
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1. At the Monetary Policy Meeting (MPM) held today, the Policy Board of the Bank of Japan decided upon the following: (1) Quantity Dimension: The guideline for money market operations The Bank decided, by an 8-1 majority vote, to set the following guideline for money market operations for the intermeeting period. The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about 80 trillion yen. (2) Quality Dimension: The guidelines for asset purchases With regard to the asset purchases, the Bank decided , by an 8-1 majority vote, to set the following....
So basically more of the same negative interest rate of -.1% and 80 trill yearly QE but 10% steeper ETF purchases come April. Doesn't really have the wow factor. Need to go to -.5% rates and increase asset purchases from 80 trillion yen to 160 trillion yen yearly. I don't think they should do this but atleast for a year or 2 this would smash the yen down and increase their exports. After 2 years of this the BOJ's balance sheet would be much larger than today and they would have to slow down considerably. This would just create a bigger bubble..
