No Plan B in Japanese central bank's new playbook
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The Bank of Japan's decision to fire one big shot in its fight to end deflation is a clear signal new Governor Haruhiko Kuroda is not one for constant tinkering with settings, and it will take something big for him to load up his policy cannon again.
The Japanese central bank unleashed the world's most intense burst of monetary stimulus at Kuroda's first rate review on Thursday, promising to inject about $1.4 trillion into the economy in less than two years in a radical gamble that sent the yen reeling and bond yields to record lows.
The BOJ has not ruled out more stimulus should the economy face a severe market shock, such as a sudden yen spike, but the threshold for action has become much higher and any future steps would be within the framework established on Thursday, say officials familiar with its thinking.
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