BoJ targets 2% inflation during 2016-17

Bank of Japan was not expected to revise its current monetary policy stand at today's meeting. The central bank also opted to continue its existing QQE program. 

The Bank has made few changes in the stimulus package, the governor announced an expansion of the average maturities of Japanese government bonds to 7-12 years from 7-10 years. Moreover, the maximum amount of real-estate investment trusts was increased, now it can buy from 5% of each issue to 10%. Kuroda believes that these stimulus package is enough reach the targeted inflation rate of 2% during 2016-17.

"Now the effects of the programme are to be expanded until the rate of inflation reaches 2%. We are curious to see when the BoJ will have to admit that this strategy failed, as it will be unable to fuel inflation. That too is likely to be an interesting subject in 2016", states Commerzbank.