The monetary policy board of the Bank of Japan (BoJ) has concluded its June monetary policy review meeting on Friday and has decided to leave its monetary policy adjustments unchangedkeeping rates at -10bps while keeping the 10-year JGB yield target at 0.00%.
The BoJ vote was 8 to 1leaving its commitment to buy JGBs unchanged for its holdings to grow at an annual rate of around 80 trillion yen.
The Bank of Japan has not changed its guidance on interest rates and the bias of monetary policyand has stated that it expects short-term and long-term interest rates to remain at current levels or lower.
About the Bank of Japan decision on interest rates
The Bank of Japan sets the interbank interest rate. This rate affects a range of interest rates set by commercial banks, building societies and other institutions towards their own savers and borrowers. It also affects the price of financial assets, such as bonds, stocks, and foreign exchange rates, which affect consumer and business demand in a variety of ways. If the Bank of Japan has a strong outlook on the Japanese economy and raises the current interest rate, this is bullish for the yen. Conversely, a dim outlook that leads the bank to cut or hold current rates will be bearish for the yen.
Source: Fx Street
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