BoJ to double monetary base over 2 years

For the FT Ben McLannahan writes:  “The Bank of Japan will aim to double the monetary base over two years by the  aggressive purchase of long-term bonds, in a bold policy aimed at ridding Japan  of the deflation that has dogged the country for almost two decades.”

Continued… 

McLannahan's story continued… “Haruhiko  Kuroda on Thursday announced his arrival as central bank governor with a “new  phase of monetary easing”, a move that comes after Prime Minister Shinzo Abe  told the bank to try and generate  2 per cent inflation within two years.

The entire article is at the link below.

Source:  Financial Times via FT.com 

http://www.ft.com/cms/s/0/81fbc13c-9cd6-11e2-9a4b-00144feabdc0.html#axzz2PTLeHWPL 

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Read more via Bloomberg at the link below.   

http://www.bloomberg.com/news/2013-04-04/bank-of-japan-boosts-bond-purchases-at-kuroda-s-first-meeting.html 

“Under a so-called banknote rule, the BOJ had pledged to keep the value of its bond holdings below the amount of cash in circulation, excluding securities held under its asset-purchase program. That guideline is “temporarily suspended,” the central bank said.”

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GGR Comment:  Should be supportive for gold.  Doubling the monetary base is indeed aggressive.  Doing it in two years?  That is an eye opener and potential game changer.

2013-04-04 02:46:18

Source: http://www.gotgoldreport.com/2013/04/boj-to-double-monetary-base-over-2-years.html