Bold headlines, but little new of substance?

We expect the two-day meeting of the Bank of Japan’s Policy Board to conclude next Tuesday (22nd) with a joint statement on policy cooperation between the Bank and the government, the unveiling of a “new” inflation target of 2%, and another increase of at least ¥10 trillion in the ceiling on the asset purchase program. Anything less and the markets would now be sorely disappointed, but even these announcements may be less substantial than they first appear.