BOJ Unveils New Framework for Policy: Statement Highlights / BLOOMBERG

  1. The short-term policy rate will be kept at minus 0,1%.
  2. BOJ will direct its government bonds purchase so that the 10 year yields will remain around current level of 0%. Average maturity rule is cancelled so they can buy along the curve . Pace of buying remains the same i.e. 80 trillion yen per year.
  3. BOJ goes on with their equity market support : they will buy ETF’s at a pace of around 6 trillion yen per year

Virt Pf : In order to broaden our diversification and given the continuation of Equity markets by BOJ we add a Japan ETF quoted in NY . We will use one which includes a JPY currency hedge which is the iShares Currency Hedge Japan ETF (Ticker : HEWJ)- chart below – . Buy at ny open today Max 24,75 USD.

http://www.bloomberg.com/news/articles/2016-09-21/boj-unveils-new-framework-for-policy-highlights-from-statement

hewj210916