Breaking: BoJ maintains short-term interest rate target at -0.1%

FXStreet Team FXStreet

BoJ maintains short-term interest rate target at -0.1%.

Key notes

Maintains 10-year JGB yield target around 0%.
Keeps monetary policy steady.
Decides on details of new loan scheme aimed at boosting lending to small, mid-sized firms hit by coronavirus pandemic.
Will set aside 75 trln yen for new loan programme to combat coronavirus impact.
Will extend deadline of programme until March 2021.
Won't hesitate to ease further if needed.
Will conduct loans under new lending programme from June.
New loan programme will target lending based on govt's interest rate, unsecured loan programmes.
New loan programme will also target non-govt-backed lending to small, mid-sized firms affected by pandemic.

Gov Kuroda will not hold news conference on Friday.

BoJ Monetary Policy Statement – Full Release

Meanwhile, USD/JPY has been choppy within a tight 107.57/76 range as the week draws towards a close. The bears are pressing against a rising trendline which meets a 50% Fibonacci retracement at 107.38 with 108.07 the next resistance to clear for a path to 108.50.

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