BOJ keeps policy steady in January, downgrades economic assessment

Dhwani Mehta FXStreet

The Bank of Japan (BOJ) kept its monetary policy settings unadjusted on the conclusion of its two-day January monetary policy review meeting on Thursday.

The central bank left the key rate steady at -10bps while maintaining a 10yr JGB yield target at 0.00%.

The BOJ trimmed its economic forecast for the current year ending in March to a 5.6% contraction from the previous forecast for a 5.5% decline.

More: BOJ Quarterly Outlook Report: Japan's economy in severe state but recovering as a trend

Statement summary

Decision on yield curve control made by 7-1 vote.

Board member Kataoka opposes decision on yield curve control.

Board member Amamiya was absent from meeting.

Market reaction

USD/JPY is a little changed on the announcement, trading modestly flat above 103.50 amid broad-based US dollar weakness.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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