Japan Just Boosted QE And The Nikkei Exploded To A 7-Year High
The Bank of Japan just boosted QE, and the Nikkei closed up 4.83%, hitting a 2007 high.
In a tight vote the BoJ backed an 80 trillion yen ($720 billion) target for expanding the monetary base (a measure of the amount of money held by the central bank and in the economy). That's up from a 60-70 trillion yen target before.
No prizes for spotting the announcement on this graph of the Nikkei:
Bloomberg
This was a major unexpected move by Haruhiko Kuroda, the Bank of Japan's governor, and a big new chapter in the country's 'Abenomics' experiment, named after Prime Minister Shinzo Abe.
It's all in reaction to a slowdown in inflation: the BoJ has committed itself to reaching a 2% inflation target, but core inflation dropped from 1.1% to 1% in October, the lowest in nearly a year.
The dollar and yen are reacting pretty much as you'd expect too. Here the dollar is is, up 1.76% against the dollar. 111 yen to the dollar is the highest since 2008.
Bloomberg
- I got a $40K raise using this 30-second strategy. It made me realize loud work, not hard work, always wins.
- Qatar Airways' new CEO explains why it's sticking with the Airbus A380 as other airlines retire the costly superjumbo
- Prince Harry and Meghan found out about Kate Middleton's cancer diagnosis on TV like everyone else, report says
- Consuming excessive salt and inadequate potassium, protein is making North Indians prone to life-threatening diseases: Study
- Upcoming cars and two-wheelers launching in India in April 2024
- Ice melt in Antarctica and Greenland is slowing Earth's rotation, affecting timekeeping: Study
- Elections on a plate: Poll panels fix menu & expense ceiling for Samosa, tea, biryani & more
- Regenerative farming, cover crops will help farmers increase yields, reduce stubble burning: IDH CEO