MTECHTIPS

MTECHTIPS:-Bank of Japan packs QE fund with 11 trn Yen punch

The Bank of Japan confronting a contracting economy has emptied its easing barrels once again in two months: a step unprecedented in the past decade. The central bank has added 11 trillion yen to its fire power taking the currency inventory set aside for asset purchase fund to 66 trillion yen.“There is a high chance that the BOJ will have to ease again in January or February considering the political pressure and the slowing economy,” Chotaro Morita, chief strategist for fixed income at Barclays Plc. in Tokyo, said before the meeting to Bloomberg.However the markets seem to have factored in the current easing development already.Gold is trading on a positive note and as on 12.11 pm IST was seen trading at $1711.45, a gain of $2.75 or 0.16 in percentage terms.On India's MCX, gold for December delivery is a tad up at Rs.31123/10 grams a gain of 0.1%. Silver was seen trading at Rs.59493/Kg, a gain of 0.17%.The Bank of Japan has been continuing with its policy of easing measures since October 2010. It has maintained its benchmark interest rates between zero and 0.1 percent and its bond purchase program at 1.8 trillion yen for a month.The continuing territorial disputes with China has took the steam off Japanese business firms with Honda, Canon Inc. (7751), Nintendo Co., and Kawasaki Heavy Industries Ltd trimming their profit forecasts.