FXStreet (Delhi) – Naohiko Baba, Research Analyst at Goldman Sachs, notes that the Bank of Japan (BOJ) maintained its monetary base target at the Monetary Policy Meeting (MPM) on December 17-18. Key Quotes “Contrary to expectations, however, it introduced measures to supplement and facilitate the quantitative and qualitative easing (QQE) program. While it is highly debatable whether the BOJ views its actions as additional easing, at the very least we believe it has sought to enhance the qualitative aspects of the program. Below are the main changes to the BOJ’s monetary policy statement. • The average remaining maturity of the BOJ’s JGB purchases will be extended to around 7-12 years, from around 7-10 years, starting from 2016 (passed with a 6-3 majority vote). The BOJ said it will conduct purchases in a flexible manner according to market conditions to encourage a decline in interest rates across the entire yield curve. • The BOJ will establish a new ETF purchase program at an annual pace of about ¥300 bn, in addition to the current purchases of around ¥3 tn a year (6-3 majority vote). The additional purchase will focus on ETFs comprising stocks of companies “proactively making investment in physical and human capital.” • The BOJ will increase the maximum amount of investment units it will purchase in each J-REIT to 10% of issued units, from 5% at present (6-3 majority vote).” For more information, read our latest forex news.