Salient to Investors:
Japan’s QE move will further devalue the yen in the long-term, and invite competitive devaluations. Experts are disappointed that Japan’s QE will not begin until 2014.
Gustavo Reis at Bank of America Merrill Lynch said the BoJ’s plan sounds more aggressive than it actually will be because many of the securities to be purchased are short-term debt, so the BoJ needs to be more aggressive.
Analysts say the small annual increase in asset purchases is unlikely to achieve 2 percent inflation
Izumi Devalier at HSBC said the BoJ’s announcement will disappoint,
Larry Kantor at Barclays said the Fed’s monetary policy is having a much more significant effect on asset prices than on the economy – stocks have more than doubled in value over the past four years but the economic recovery is weak.
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