The BOJ stunned investors by expanding its ultra-aggressive monetary easing program, saying that a combination of weak demand and a lower oil price meant that more action was needed to banish “a deflationary mindset,” though there is no indication of a "deflation mindset" (putting aside the fact that deflation is not a problem for an economy) .
The Japanese central bank said it would step up its asset purchases so that the monetary base expanded at an annual pace of Y80tn ($724bn), rather than Y60-70tn as in the past.
PMI = purchasing managers index |
(Charts via Krugman)
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