B.O.J. announces major policy revamp

Sep 21, 2016, 2:17 AM EDT
Bank of Japan, Tokyo
(Source: Toshihiro Oimatsu/flickr)

In its latest move to up the inflation and stimulate economic growth, the Bank of Japan overhauled its monetary policy at a much-awaited meeting on Wednesday. The bank kept the deposit rate untouched at negative 0.1 percent and decided to buy long-term government bonds to maintain 10-year bond yields around current levels of zero percent.

With a slew of strategic changes, the B.O.J. seems to have answered those who remained critical of the bank’s aggressive easing measures, writes CNBC. The Nikkei, which was trading slightly negative during the morning session, registered a surge of 1.13 percent after the announcement.

Speculations ran high ahead of Wednesday’s meeting with some analysts predicting a further sliding of interest rates below zero while others expecting a change in the size or make-up of the bank’s quantitative and qualitative easing (Q.Q.E.) asset purchases.

Market players complain that the central bank, which has failed to meet two percent inflation target despite pushing the deadline again and again in the past three years, has “blindsided” them with frequent policy changes since 2013 when B.O.J. Gov. Haruhiko Kuroda assumed office, reports The Wall Street Journal