* BOJ changes policy target to base money from interest rates
* Combines bond-buying schemes, targets JGBs across curve
* BOJ to double JGB, ETF holdings in 2 years
* Kuroda get unanimous support from BOJ board
* Kuroda says took all steps BOJ could think of
By Leika Kihara and Stanley White
TOKYO, April 4 (Reuters) – The Bank of Japan unleashed the world’s most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling and bond yields to record lows.
New Governor Haruhiko Kuroda committed the BOJ to open-ended asset buying and said the monetary base would nearly double to 270 trillion yen ($2.9 trillion) by the end of 2014 in a shock therapy to end two decades of stagnation.
The U.S. Federal Reserve may buy more debt under its quantitative easing, but with the Japanese economy about one-third of the size of the United States, the scope of Kuroda’s “Quantitative and Qualitative Monetary Easing” is unmatched.
“This is an unprecedented degree of monetary easing,” a smiling Kuroda told a news conference after his first policy meeting at the helm of the central bank.
“We took all available steps we can think of. I’m confident that all necessary measures to achieve 2 percent inflation in two years were taken today,” he said.
One of those steps was to abandon interest rates as a target and become the only major central bank to primarily target the monetary base — the amount of cash it pumps out to the economy. It adopted a similar policy in 2001-2006, but not on this scale.
The scope of the changes Kuroda pushed through, and the fact he secured unanimous board support for them, drove …read more
Source: FULL ARTICLE at Huffington Post