Despite the weakening economy the BOJ holds back from more stimulus
By Peter Walden, News Editor
30 Oct 2015
Despite worse than expected economic data the Central Bank of Japan (BOJ) held fire on increasing the size of its already huge quantitative easing program.
The BOJ is gambling that the current annual stimulus program of £432 bn will be sufficient enough to halt the world’s third largest economy falling into recession. It appears that QE in Japan is not working as the economy remains weak and inflation remains negative.
The governor of the Bank of Japan, Haruhiko Kuroda, has kept the door open vowing the BOJ will print more money if required. With both the ECB and BOJ threatening to increase the size of their already extensive money printing operations it is surprising the gold price is trading below $1,200 per ounce.