Bank of Japan Implements Aggressive Bond Buying Policy; Stock Futures Rise
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U.S. futures are indicated higher Thursday as the Bank of Japan is implementing a more aggressive bond buying policy.
Following a two-day policy meeting, the BoJ decided it would buy ¥7 trillion in long-term Japanese government bonds (JGBs) per month and will also move its current target for setting policy to base money from the current overnight call rate measure. The goal exceeds the ¥5.2 trillion of purchases expected on the Street. The BoJ also plans to double holdings of long-term government bonds and exchange-traded funds.
A 2 percent inflation goal is set to be met over the next two years.
The yen is unsurprisingly weaker versus other currencies Thursday morning. U.S. index futures are largely indicated 0.4 percent higher early.
Following a two-day policy meeting, the BoJ decided it would buy ¥7 trillion in long-term Japanese government bonds (JGBs) per month and will also move its current target for setting policy to base money from the current overnight call rate measure. The goal exceeds the ¥5.2 trillion of purchases expected on the Street. The BoJ also plans to double holdings of long-term government bonds and exchange-traded funds.
A 2 percent inflation goal is set to be met over the next two years.
The yen is unsurprisingly weaker versus other currencies Thursday morning. U.S. index futures are largely indicated 0.4 percent higher early.
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