Breaking: USD/JPY jumps as BOJ keeps policy settings steady
The Bank of Japan (BOJ) board members decided on Thursday to make no changes to its monetary policy settings, holding rates at -10bps while maintaining 10yr JGB yield target at 0.00%. The announcement comes after the central bank concluded its two-day policy review meeting.'
Summary of the statement
BOJ made decision on YCC by unanimous vote.
Boj leaves unchanged its forward guidance on interest rates, says expects short- and long-term policy rates to remain at 'present or lower' levels.
Boj leaves unchanged its guidance on policy bias, says will take additional easing steps without hesitation as needed with eye on pandemic's impact on economy.
Must be vigilant to financial, fx market moves and their impact on japan's economy, prices.
Japan's inflation expectations heightening.
Japan's economy picking up despite rising commodity prices.
Market reaction
The yen saw a fresh selling wave on the expected BOJ announcement, driving the USD/JPY pair higher above 145.00. The pair was last seen trading +0.83% on the day at 145.26, the highest level in 24 years.
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.
Author
FXStreet Team
FXStreet
