Bank Of Japan Launches 'Unprecedented' $1.4 Trillion Stimulus Package
* Kuroda says took all steps BOJ could think of
By Leika Kihara and Stanley White
Reuters | Posted: 04/04/2013 1:39 am EDT
TOKYO, April 4 (Reuters) - <B>The Bank of Japan unleashed the world's most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling and bond yields to record lows.</B>
New Governor Haruhiko Kuroda committed the BOJ to open-ended asset buying and said the monetary base would nearly double to 270 trillion yen ($2.9 trillion) by the end of 2014 in a shock therapy to end two decades of stagnation. The Bank of Japan is already committed to bond purchases of $140bn a month in 2014. This is almost double the US Federal Reserve's net purchases (around $75bn a month), and five times as much as a share of GDP.
"This is an unprecedented degree of monetary easing," a smiling Kuroda told a news conference after his first policy meeting at the helm of the central bank.
"The result is nothing short of regime change," HSBC's Japan economist Izumi Devalier said in a report.
Japan has launched all out currency war ?
This will be interesting.
I can see Obama saying, "see they can do it. Why can't I do it? I would like to have $1.4 trillion or more to spend and hand out to my friends. Can you imagine how much of that would come back to me after I'm out of office?!"