JPY: Obviously, the BOJ said of the fears associated with the prospects of the economy

USD / JPY pair has jumped straight to 84.00 at night as a response to unexpected monetary policy easing extensive. In a statement the Bank of Japan had two potentially important points: the determination to continue the policy of zero interest rates until the achievement of price stability (probably a few years), and a separate fund size of 5 trillion yen (nearly $ 60 billion) for the purchase of various financial assets including JGBs, CPs, corporate bonds, exchange traded funds and Japanese REITs (need to change the law so that the Bank of Japan could buy them).



New round of buying assets in addition to the procurement program at 30 trillion yen bail, which exists in the hope that it will reduce long-term interest rates, which is still lower risk premia. It is obvious that the Bank of Japan said the fears associated with the prospects of the economy. Bank of Japan decided to take additional quantitative easing, because it is not surprising that the yen weakened. The Fed is considering further quantitative easing by almost $ 500 billion in the near future, such a move for the Bank of Japan is a very bold, though the part is can still look like a relatively timid action.

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