"There is a big difference in the degree of enthusiasm between the BOJ and the Fed"
- Takeshi Minami, chief economist at Norinchukin Research Institute Co.
The Bank of Japan increased the size of its asset-purchase program by JPY10 trillion ($127 billion) to a total of JPY80 trillion, in order to boost slowing economic activity. The increase in nation's asset-purchase program will be split equally for additional purchases of treasury discount bills and government's bonds. The BoJ also kept benchmark interest rate unchanged at 0.10%.
"There is a big difference in the degree of enthusiasm between the BOJ and the Fed," said Takeshi Minami, chief economist in Tokyo at Norinchukin Research Institute Co. "The BOJ just takes a wait-and-see attitude despite its inflation goal, while the Fed is striving to reduce unemployment."
"The prevailing atmosphere shows no clue on when inflation will rise into positive territory and stay there," said Daisaku Ueno, a senior foreign-exchange and fixed-income strategist at Mitsubishi UFJ Morgan Stanley in Tokyo.
The Nikkei 225 Stock Average plummeted 1.57 per cent, or 145.23 points, to 9,086.98. The broader Topix Index dived 1.44 per cent, or 10.99, to 753.81.
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