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Bank of Japan Meeting Review

Thu, Aug 23 2007, 14:18 GMT
by Marina Schiaffino

FXstreet.com

The Bank of Japan’s monetary policy board has decided on a 8-1 result to keep overnight rate target on hold at 0.5%. The BoJ said that it was Atsushi Mizuno who voted against the proposal by governor Toshihiko Fukui to leave the interest rate unchanged.

The post-meeting statement has been quite dovish, following a different tone to the past meetings. GBP, EUR and USD appreciated significally against the JPY.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

• Read the Announcement of the Monetary Policy Meeting Decisions at BoJ
• Minutes of previous Monetary Policy Meetings

In-Depth Analysis

• Daily Fx Strategy - The Bank of Japan left interest and its economic outlook unchanged by CMC Markets NY
• Daily Market Report - The Bank of Japan kept its target rate on hold at 0.50 percent by Wachovia
• Asia Market Update - BoJ leave rates unchanged, as expected by Trade The News

Related News

• Yen steady after BoJ keeps interest rates on hold (Thomson Financial News)
• Bank of Japan votes 8-1 to keep overnight call rate unchanged (Thomson Financial News)
• Bank of Japan likely to leave rates on hold at next policy meeting - report (Thomson Financial News)
• Bank of Japan monitors markets to see if recent turmoil hurt economy - Fukui (Thomson Financial News)
• Bank of Japan keeps monthly assessment of economy unchanged - UPDATE (Thomson Financial News)
• Bank of Japan keeps monthly assessment of economy unchanged (Thomson Financial News)

Analysts' comments

• Hiroshi Shiraishi, chief Japan economist for Lehman Brothers:
  "In terms of risk/reward perspective it just does not make sense for the Bank of Japan to be hiking (interest rates) now as it could be accused of fueling market instability." - MarketWatch
• Azusa Kato, economist at BNP Paribas:
  "It's inevitable the Bank of Japan has to take a wait−and−see approach." - The Associated Press
• Tatsuya Kawanishi, junior advisor at FXstreet.com:
  "The Bank of Japan decides to hold the ongoing interest rate (0.5%) which has been kept since June 2006. Even though the BoJ considers that the Japanese economy starts on a gradual recovery trend,it is said that in consideration for the U.S. credit crisis, the BoJ can not take a risk of sharp hike of the JPY against the USD." - FXstreet.com

Published on  Thu, Aug 23 2007, 14:45 GMT