The Bank of Japan has launched the most daring monetary experiment of modern times, aiming to double the money base within two years to overpower deflation and catapult the economy out of slump.
The blast of money is expected to reignite the yen “carry trade” and flood global markets with up to $2 trillion (£1.3 trillion) of pent-up savings, giving the entire world a shot in the arm.
The BoJ’s new team under governor Haruhiko Kuroda voted 8:1 for a double dose of “quantitative and qualitative monetary easing”, vowing to inject stimulus for “as long as it takes” to break the deflation psychology.
“This will be recorded in economic history books as a watershed in central bank action. Investors should be shocked and awed,” said Stephen Jen from SLJ Macro Partners.
Full article: Japanese bank governor Haruhiko Kuroda makes history with monetary blitz (The Telegraph)