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Not even a whirring blade:
*BANK OF JAPAN TAKES ADDITIONAL ACTION
*BOJ EXPANDS PURCHASES OF ETFS TO 6T YEN
*BOJ DOUBLES USD LENDING PROGRAM TO $24B
*BOJ MAINTAINS POLICY BALANCE RATE AT MINUS 0.100%
*BOJ MAINTAINS MONETARY BASE TARGET AT 80T YEN
*BOJ BOARD VOTES 7-2 TO KEEP NEG RATE UNCHANGED
*KURODA ORDERS ASSESSMENT OF POLICY EFFECTIVENESS NEXT MEETING
No QE, no expanded monetary base, no helicopter. No MOAR! Yen to the moon:
US dollar down but no impact on commodity prices at this point. I guess the 28tr yen stimulus is not enough:
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- ~7.5t yen of fiscal spending
- ~6t for fiscal investment and loan financing program
- 15,000 yen handouts for low-income people
- 10.7t yen for infrastructure spending such as maglev line, ports
- 10.9t in SME support to weather Brexit
Not clear yet how much is new. A lot less.
Looks like modest fiscal expansions are the new black.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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