Market slams Bank of Japan easing

MARKET NEWS

TOKYO – The Bank of Japan last week eased its super-loose monetary policy stance, but the move was slammed by analysts and traders.

With interest rates near zero, the bank has had little room to maneouvre, and eased policy by increasing its target for bank reserves it holds to ¥6 trillion, from ¥5 trillion. It also said it would increase its purchases of Japanese government bonds (JGBs) to ¥600 billion per month from ¥400 billion.

However, analysts told FX Week the move smacked of desperation