Japanese stocks and USDJPY are back below the lows of the US day-session following The Bank of Japan's decision not to stimulate further (despite all the collapsing economic evidence one might need to do such a thing). Investors were clearly hoping for moar (even if economists weren't). With GDP expectations collapsing, BoJ still voted 8-1 not to increase QQE keeping monetary base growth expectations flat. The result is a 500 point drop in The Nikkei from this morning's highs and around 1 handle drop in USDJPY... for now.
Even with GDP expectations plummeting...
[8]
The BoJ was boxed into not reaching for the punchbowl just one more time.
The BOJ refrained from boosting monetary stimulus even after inflation came to a halt, with Governor Haruhiko Kuroda betting price gains will re-emerge as the impact from cheaper oil fades.
The central bank kept a plan to expand the monetary base at an 80 trillion yen ($672 billion) annual pace.
“It’s looking doubtful that the U.S. will be able to raise rates this year,” Mitsushige Akino, an executive officer at Ichiyoshi Asset Management Co. in Tokyo, said by phone. “I don’t expect any major changes from the BOJ. There might be some selling from disappointment, but it’ll be minimal.”
And the result...
[9]
It seems everyone waiting on The Fed to move first...
Charts: @Not_Jim_Cramer and Bloomberg
