June 17, 2022 - 12:52 PM 287 views
On Friday, the Bank of Japan (BOJ) monetary policy board has winded up its 2-day June policy review meeting and clearly decided to leave its monetary policy settings unaltered, and holds rates at -10 basis points(bps) while managing the 10 yr JGB yield target at 0.00%.
The BOJ voted 8 to 1 to keep its vow to buy JGBs intact, implying that its holdings will grow at a rate of roughly 80 trillion yen per year.
BOJ maintained its forward guidance on interest rates and policy bias, stating that short- and long-term policy rates are expected to continue at 'current or lower' levels.
The Market Reaction
The BOJ news shattered the yen, sending the USD/JPY pair past the 134.00 mark. The pair was last seen trading at 134.25, up 1.58 percent on the day.
the Bank of Japan's Interest Rate Decision
The Bank of Japan announces its interest rate decision. In general, if the Bank of Japan is concerned about the economy's inflationary prospects and raises interest rates, it is beneficial, or bullish, for the JPY. Similarly, if the Bank of Japan has a dovish view of the Japanese economy and holds or lowers the interest rate, it is negative, or bearish.
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