On Tuesday, the Bank of Japan (BOJ) concluded its 2-day July monetary policy review meeting and made no changes to its monetary policy settings, holding rates at -10bps while maintaining 10yr JGB yield target at 0.00%.
The BOJ vote was 8 to 1, leaving its pledge to buy JGBs unchanged so that its holdings increase at an annual pace of around 80 trln yen.
The decision on maintaining its interest rate targets was made by a 7-2 vote with board members Goushi Kataoka and Yutaka Harada dissenting.
The central bank left its forward guidance unchanged, adopted in April that said "will keep very low-interest rates levels for an extended period of time at least through around spring 2020."
In a knee-jerk reaction to the BOJ announcement, the Yen hit fresh daily highs, sending the USD/JPY pair further south to near 108.65 region, down -0.10% on the day.
About BOJ Interest Rate Decision
BoJ Interest Rate Decision is announced by the Bank of Japan. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.
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