Bond Purchases to be raised by Bank of Japan as Kuroda takes over control


The newly appointed Governor Haruhiko Kuroda has begun initiatives to end 15 years of deflation by doubling the quantity of monthly bond purchases to reach 2 percent inflation within two years.

Bond Purchases to be raised by Bank of Japan as Kuroda takes over control-global-annal

As Kuroda presided over his first meeting since swearing in the office last month, the board today rationalized its asset purchase programs and temporarily suspended a cap on some bond holdings. The board also dropped a limit on debt maturities. The BOJ will buy 7 trillion yen ($74 billion) value of bonds each month, revealed the central bank in a statement.

Japanese stock exchange has also taken the news positively and shown some recovery following the announcement.

Source: Bloomberg, WSJ

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s