The Bank of Japan disappointed global doves today looking moar easing, from the FT:
The yen surged 2 per cent and equities slumped after the Bank of Japan dashed market hopes of stimulus, despite data showing the country had fallen back into deflation for the first time since 2013.
Banishing deflation, which has dogged Japan’s economy for the best part of two decades, is a key plank of the Abenomics growth programme of Prime Minister Shinzo Abe. But the central bank’s pursuit of a weak yen has been stymied in recent months, prompting expectations of more monetary easing at Thursday’s meeting.