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  • The Bank of Japan declared its intention to have a 2% inflation target (with an unspecified time horizon), trumping its previous inflation target of 1% and its long standing inflation target of "anything above 0%" (est. 2001). Inflation has not been above 0% very often.
  • The BoJ knows that wishing alone will not make it so, and thus has announced that it will buy JPY13tn of assets a month for eternity, or until inflation reaches 2%, whichever comes first (probably the former). The Japanese government has said there is no intention to revise the BoJ law.
  • Weidmann of the Bundesbank was critical of the potential politicisation of exchange rates arising from governments interfering with central bank independence. However, the Euro area is not perhaps in a position to lecture others on economic management (more bail out tranches were agreed yesterday).
  • The UK offers us public sector borrowing data and remarks from Bank of England governor King. Germany has the ZEW economic sentiment reading - confidence has been waning somewhat in Germany as the impact of the Euro crisis has started to be felt.

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