BOJ keeps monetary policy settings unchanged in April, USD/JPY unmoved


The Bank of Japan (BOJ) left its monetary policy settings untouched following the conclusion of its two-day April monetary policy review meeting on Tuesday.

The central bank kept the benchmark policy rate on hold at -10bps while maintaining its pledge to buy J-REITS at an annual pace of up to JPY180 bln.

At its March policy meeting, the BOJ clarified that the 10-year JGB yield may move up or down 0.25% (not 0.2%) around its 0% target. The central bank also altered the ETF buying limits - removing the lower ceiling of 6 trillion yen ($55 billion) while keeping an upper limit of 12 trillion yen. 

Statement summary

BOJ’s decision on yield curve control made by 8-1 vote.

Board member Kataoka opposes decision on yield curve control.

Board's real GDP median forecast for fiscal 2021 at 4.0% vs +3.9% in Jan.

Board's real GDP median forecast for fiscal 2022 at 2.4% vs +1.8% in Jan.

Board's real GDP median forecast for fiscal 2023 at 1.3%.

Board's core CPI median forecast for fiscal 2021 at +0.1% vs +0.5% in Jan.

Board's core CPI median forecast for fiscal 2022 at +0.8% vs +0.7% in Jan.

Board's core CPI median forecast for fiscal 2023 at +1.0%.

Market reaction 

With the initial market reaction, USD/JPY barely moved and held its range around 108.35.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds steady above 1.1750 amid worsening mood

EUR/USD is off the highs, holding steady above 1.1750 amid a worsening market mood, courtesy of the falling Chinese stocks. The pair opened higher and moved in a narrow trade band with 15 pips movement, with all eyes on the FOMC this week. 

EUR/USD News

GBP/USD: Demand for the pound is still partial

The GBP/USD pair ended Friday and the week unchanged around 1.3750, after bottoming on Tuesday at 1.3571, its lowest in five months. Brexit and the pandemic keep limiting demand for the pound. GBP/USD is losing bullish strength, but there are no signs of an upcoming slide.

GBP/USD News

Gold bounces back above $1800 amid retreating Treasury yields

Gold price is reversing a dip below $1800 so far this Monday’s Asian trading, as the US Treasury yields retreat heading into the FOMC week. The market sentiment is cautious, as investors gear up for a busy week. The S&P 500 futures drop 0.25%. 

Gold News

Bitcoin price hits $40,000 as Amazon allegedly prepares for cryptocurrency payments

Bitcoin price is currently hovering below $40,000 after a retest. A pullback to the range’s mid-point seems likely after such a massive rally. Such a move will provide buyers a breather to recuperate and prepare for the next leg of the upswing.

Read more

Week Ahead: Fed to talk taper but stall on action, growth data in focus amid recovery doubts

The Federal Reserve is expected to provide more hints on tapering when it meets next week but may stop short of revealing a timeline. Amidst jitters about the Delta variant, markets could whipsaw if the Fed cites both progress and dangers ahead.

Read more

Forex MAJORS

Cryptocurrencies

Signatures