Bank of Japan announced this morning it would increase its Asset Purchase Program by 10 trillion yen, from 91 trillion to 101 trillion yen. They split evenly, buying 5 trillion in T-Bills and 5 trillion in JGBs.  The Bank released the details on the Stimulating Bank Lending Facility, which provides an “unlimited” amount of cheap funding  to banks that increase their loans.

The policy move was as is expected and not quite the Abe QE that has sparked the massive move in the stock market and yen.  The next meeting is big as the Prime Minister Abe will be in power.  The Nikkei is a down about 1 percent on profit taking and the yen a bit stronger.

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