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Statement on Monetary Policy
At the Monetary Policy Meeting (MPM) held today, the Policy Board of the Bank of Japan decided upon the following guidelines for market operations and asset purchases. 1. Yield Curve Control The Bank decided, by an 8-1 majority vote, to set the following guideline for market operations for the intermeeting period. The short-term policy interest rate: The Bank will apply a negative interest rate of minus 0.1 percent to the Policy-Rate Balances in current accounts held by financial institutions at the bank. The long-term interest rate: The Bank will purchase a necessary amount of Japanese government bonds (JGBs) ... (full story)
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USD/JPY: No response to BOJ's status quo rate decision
BOJ keeps key policy tools unchanged, USD/JPY remains comatose. Risk-on could keep the yen under pressure during the day ahead. BOJ's dismal economic forecasts may add to bearish pressures around the Yen. USD/JPY is barely moving in response to the Bank of Japan's latest decision to keep key monetary policy tools unchanged. The central bank retained the 10-year government bond yield target at 0.00% and kept the policy balance rate unchanged at -0.10%, as widely expected. As such, there is little reason for traders to buy or sell the Japanese yen aggressively. However, the BOJ said that the Japanese economy is in an ... (full story)
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Japan GDP to shrink 4.7% in fiscal 2020, BOJ says
The Bank of Japan on Wednesday forecast the nation's economy to contract 4.7% in fiscal 2020 despite recent signs of gradual recovery. In a quarterly outlook report released the same day, the central bank said the contraction will be followed by an expansion of 3.3% in fiscal year 2021 and 1.5% in fiscal year 2022. Japanese fiscal years end in March. Core consumer inflation is projected to fall 0.5% in fiscal year 2020 before rebounding 0.3% in fiscal 2021 and 0.7% in fiscal 2022. The outlook report was released after a two-day policy meeting in which the central bank decided to leave the monetary policy unchanged ... (full story)