It may be hard to believe but the Bank of Japan just disappointed markets with its announcement that it target 2% inflation and print another $2 trillion Yen to buy everything in sight. From Bloomie:
The Bank of Japan set a 2 percent inflation target and said it will shift to Federal Reserve-style open-ended asset purchases in its strongest commitment yet to ending two decades of deflation. The central bank will buy about 13 trillion yen ($145 billion) in assets per month from January 2014, including about 2 trillion in Japanese government bonds and about 10 trillion yen in treasury bills.
The Yen is rallying and Nikkei is down hard, the euro and Aussie have jumped:
Maybe markets expected more. Maybe the 2014 timetable is too far away. Maybe it’s just “sell the fact”.
