The Bank of Japan has abandoned it's monetary base target. Instead it plans to keep its QE progam in place until consumer price inflatlion exceeds 2 per cent and stays above target in a stable manner i.e. it plans to overshoot its inflation target.
Instead of targetting a specific target for the nation's monetary base, The Bank will also now aim at yield curve control. It plans to buy 10 year bonds in order to keep the yield more or less at the current level of around 0%.
Initially this is likely to see bonds bought at the rate of 80tn pa. but in future the bank will be flexible in the rate of purchases in order to achieve its yield target.
At this stage it has made no change to its -0.1% policy rate but it can be cut to set a target for long term bond rates.
Keeping QE in place until inflation gets above 2% removes speculation that the program might end before inflation is under control. This is more of a "whatever it takes" approach.
Keeping the long bond rate low is also aimed at stimulating activity
The bottom line, QE is likely to last longer. The amounts involved will be flexible and aimed at targeting a long term bond rate.
The intitial response has seen USDJPY rally to around 102.7 from 101.5