BOJ: New measures for sustainability, but not bazooka - Nomura

Research Team at Nomura, notes that the BOJ introduced a new policy framework yesterday, "QQE with yield curve control", although the Bank did not cut its policy rate.

Key Quotes

“The changes to the policy framework suggest the BOJ's focus is shifting to a yield-targeting framework from quantitative easing. Although the BOJ has not started outright tapering, it may take a more flexible stance on the pace of JGB purchases going forward.

However, yesterday’s policy actions are no bazooka. They are measures to improve the sustainability of policy without creating market turmoil. Although the BOJ has so far managed to avoid market turmoil, the impact of its additional easing on the economy and financial market will likely be limited.”