Bank of Japan (BOJ) Governor Haruhiko Kuroda said on Monday that the excessive foreign exchange (FX) moves seen recently were undesirable and reiterated that they were not targeting the FX market, as reported by Reuters. "It's important to back the economic activity with powerful monetary easing," Kuroda added. "It will take time for sustainable, stable inflation to take hold in Japan."
BOJ stands pat despite the slump in yen
Bank of Japan last movements on coronavirus countering
“Long-term interest rates have been stable since adoption of fixed-rate operations,” said Bank of Japan Deputy Governor Masayoshi Amamiya per Reuters. "If monetary easing is reduced now, that would make 2% inflation even more distant target," also noted.
Bank of Japan Governor Kuroda said Friday, the central bank must continue monetary easing to achieve its price target. "BOJ’s massive bond buying may be hurting market functions but we also need to maintain massive monetary easing", also noted.
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April BOJ meeting review
The Bank of Japan was expected and has maintained its key interest rates at today’s meeting, continuing to defend low rates with bond-buying but is uber dovish and pessimistic in its guidance.
USD/JPY shoots to near 129.54 on a neutral stance dictated by the BOJ in its monetary policy meeting. The decision is in-line with the market expectations as inflation is well below the target of 2%. The BOJ has kept the rates unchanged at -0.1%.
December BOJ meeting review
At its December monetary policy meeting, the Bank of Japan (BOJ) left its policy settings unadjusted once again but decided to scale back pandemic stimulus upon reaching March 2022 deadline. The BOJ decides to taper corporate bond and commercial paper buying.
After April 2022, the Bank of Japan (BOJ) will gradually slow the pace of commercial paper and corporate bond buying to levels before the pandemic, the central bank said in its monetary policy statement.
USD/JPY is a touch softer on the Bank of Japan announcements, although sticking to near flat for the day around 113.60. The BoJ has kept the policy balance rate unchanged at -0.1%, as expected and left the 10-year yield target unchanged at 0.0%, as expected as well.
What is the BOJ?
The Bank of Japan (BoJ) is the central bank of Japan. It is a juridical person established based on the Bank of Japan Act (hereafter the Act), and is not a government agency or a private corporation.
POLICY BOARD. The Policy Board is established as the Bank's highest decision-making body. The Board determines the guideline for currency and monetary control, sets the basic principles for carrying out the Bank's operations, and oversees the fulfillment of the duties of the Bank's officers, excluding Auditors and Counsellors.
HISTORY. The Bank of Japan was established under the Bank of Japan Act (promulgated in June 1882) and began operating on October 10, 1882, as the nation's central bank. The Bank was reorganized on May 1, 1942 in conformity with the Bank of Japan Act (hereafter the Act of 1942), promulgated in February 1942. The Act of 1942 strongly reflected the wartime situation: for example, Article 1 stated the objectives of the Bank as "the regulation of the currency, control and facilitation of credit and finance, and the maintenance and fostering of the credit system, pursuant to national policy, in order that the general economic activities of the nation might adequately be enhanced." The Act of 1942 was amended several times after World War II. Such amendments included the establishment of the Policy Board as the Bank's highest decision-making body in June 1949. The Act of 1942 was revised completely in June 1997 under the two principles of "independence" and "transparency." The revised act (the Act) came into effect on April 1, 1998.
Who is BOJ's president?
Haruhiko Kuroda was born in Omuta, in 1944. He is the 31st and current Governor of the Bank of Japan (BOJ). He was formerly the President of the Asian Development Bank from 1 February 2005 to 18 March 2013.
Kuroda has been an advocate of looser monetary policy in Japan. His February 2013 nomination by the incoming government of the Prime Minister Shinzō Abe had been expected. Also nominated at the same time were Kikuo Iwata – "a harsh critic of past BOJ policies" – and Hiroshi Nakaso, a senior BOJ official in charge of international affairs, as Kuroda's two deputies. The former governor, Masaaki Shirakawa, left in March 2013
Kuroda on his Wikipedia's profile
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the world interest rates table
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.