BoJ inaction keeps door open at 135.00 level – TDS

The Bank of Japan (BoJ) has kept its monetary policy setting and forward guidance unchanged. However, there was a possibility that the central bank would widen its yield curve control range (YCC) and/or change the target to a YCC with a lower maturity. The JPY reacted negatively (falling around 1% against the USD). This result keeps the door open for further declines in the JPYaccording to economists at TD Securities.

the lonely dove

“The BoJ has kept its breakeven monetary policy rate unchanged as expected, countering some speculation that it would widen the band. The result highlights that the BoJ is far from any policy set-up change in terms of YCC targets, let alone its policy rate”.

“The BoJ’s inflation forecast was revised higher, but it maintains that any increase in the CPI above 2% will be temporary“.

BoJ inaction keeps door open for further JPY declines. We see the 135.00 region as a line in the sand.”

Source: Fx Street

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