Some remarks by the BOJ accompanying the decision
These bazookas are lacking any real oomph, Mr. K.
- Economic activity likely to remain weak for the time being
- Somewhat weak indicators of inflation expectations have been seen recently
- Need to watch for the impact of oil price drop
- Watching the coronavirus impact very closely
- New loan program to have zero interest rate, runs for a year
- New loan program to be offered until the end of September
Addressing the liquidity and financial strains looks to be their number one priority right now and while that may be good to alleviate pressure from the virus outbreak, it isn't going to do much to help prevent the Japanese yen from strengthening in the big picture.
The BOJ opting to choose the ECB-style to respond goes to show how depleted their policy locker is and that won't give the market a reason to fight back against yen strength.
