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Dovish BOJ leaves rates unchanged; USD/JPY makes 6-year highs
The Bank of Japan left rates unchanged at -0.1% and will continue with its monetary stimulus by targeting 0% on its 10-year bond yields. In addition, the BOJ revised down its economic outlook, after recently revising it higher! This is in stark contrast with its counterparts in the US and UK, the Fed and the BOE, which raised rates by 25bps each. One of the reasons for the downgrade was due to the continued impact of the coronavirus on the economy. However, the other main reason was due to concerns about commodity prices, particularly oil. Japan is a major importer of oil and higher prices could cause growth to slow ... (full story)