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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: YanivBA who wrote (53387)	7/14/2006 2:15:42 PM
From: Moominoid	Read Replies (2) \| Respond to of 116555

I'm still curious how Japan executes such huge changes and why.

To: YanivBA who wrote (53387)	7/14/2006 6:48:10 PM
From: booyaka	Read Replies (1) \| Respond to of 116555

The BOJ probably injected the extra liquidity because the stock market was under stress Thursday and yesterday (mainly in response to the US market's selloff and the Middle East situation, not the end of ZIRP, which was already discounted). It's probably a short-term adjustment, assuming the stock market stabilizes. The BOJ is skittish as they navigate the policy normalization process. The last thing they want to do is tighten too much too quickly. Plus they see little if any near-term inflationary risk. Hence the huge injection.