“At this meeting, we judged that it was suitable to look more closely at the extent to which the effects of our policies are sinking in,” —Mr. Kuroda
The Nikkei Stock Average closed down 3.6% after rising in the morning on anticipation of further BOJ action. Japan decided not to NIRP itself today because they want to see how the most recent NIRP-ing works out. Don’t worry though, Kuroda said there is more NIRP powder in the NIRP bazooka.
Meanwhile prior to the rate decision last night, Japan released more heinous economic numbers and is nowhere near their inflation targets. Bottom line. NIRP-ing isnt working.
Japan practically owns all of their own stock market and most of their bonds. Who’s left to buy?
Take notes kids, history books will love this story in five years. I’m sure it’s fine.
$EWJ