Introduction:The unmissable Bank of Japan (BoJ) meeting on Thursday the 4th of April has put in place a huge "shock and awe" level of QE, they have promised to purchase Japanese Government Bonds (JGB), ETF's and REIT's in order to increase the monetary base and help raise inflation.A breakdown of what the BoJ is actually doing is listed below;BoJ to buy 7 Trillion Yen of JGB's per month, all maturities up to 40 year bonds. Thus extending the average maturity to 7 years from 3 currently.BoJ to purchase "low risk" ETF's at a pace of 1 Trillion yen per year and REIT's at 30 Billion yen per year.2 year time zone to achieve 2% CPI Y/Y target.The overall aim of these measures is to double the monetary base, and hopefully, they believe, because of this they will start to see inflation. The current CPI Y/Y currently stands at 0.7% and has been almost stagnant for the past 18-20 years.Japan CPI Y/Y. Thomson ReutersAs you can see, they are aiming to target 2% (the yellow line) in a relatively short time frame, even though there is a 2 year target, if there is no improvement in the next 6-9 months there will be politcal pressure mounting._______________________________________________________…
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