FXstreet.com (Barcelona) - The two-month wait is finally over with the Bank of Japan announcing overnight that it will formally adopt a 2% inflation target and introduce an open-ended asset purchase program starting from January 2014, after the current purchase program has concluded. In a 12-page announcement, the BoJ said monthly asset purchases would be targeted at 13trn yen from January 2014, consisting of 2 trillion in JGB purchases and 10 trillion in t-bills purchases. As a result of these measures, the total size of the asset purchase program will be increased by 10 trillion yen in 2014 after accounting for maturities.

The announcement also included a highly anticipated joint statement from the Government and BoJ in which both parties agreed to strengthen policy coordination and work together to "overcome deflation early". The joint statement also says that the BoJ will pursue monetary easing to achieve the inflation target at the "earliest possible time".

Meanwhile, according o Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “the government will promote measures aimed at establishing a sustainable fiscal structure and formulate measures for strengthening competitiveness such as concentrating resources on innovative research and development, and carrying out bold regulatory and institutional reforms.” As was expected, the overnight call rate was left unchanged at zero to 0.1%. Board members voted to adopt the above measures with a 7-2 majority vote.