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BANK OF JAPAN UNLEASHES AGGRESSIVE MONETARY POLICY, 2% INFLATION TARGET, OPEN-ENDED ASSET PURCHASES (JPY, NKY)

By on January 22, 2013

bank of japan

The Bank of Japan’s monetary policy decision is out.

First, the Bank of Japan said it will adopt a 2 percent inflation target, which was widely expected.

Second, the BoJ announced an aggressive open-ended asset purchase plan, which will begin in January 2014.  It’ll purchase 2 trillion yen worth of JGBs per month and 10 trillion yen worth of T-bills per month.  This is according to Bloomberg Television.

This aggressive policy was the platform on which Shinzo Abe was re-elected to his post as Prime Minister.

Expectations for a weak yen, inflationary policy has traders around the world shorting the yen while, going long Japanese stocks.

SEE ALSO: The True Story Of The 1980′s, When Everyone Thought Japan Would Buy America >

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