The Bank of Japan supported the JPY. Overview for 16.06.2023

16 июня 2023 - Fx4News

The Japanese yen has somewhat stabilised against the US dollar. The current USDJPY quote is 140.61.

On Friday, the Bank of Japan held its regular meeting, following which it kept the interest rate at -0.1% per annum. Thus, the regulator continues to ignore global trends among central banks and sticks to its stimulus plan. In its comments after the meeting, the BoJ noted that the yield curve control programme (YCC) remains unchanged.

Above all, the BoJ maintains its view that inflation in the country will slow down in the coming months. This viewpoint contradicts that of most economists. There is a certain risk here: if the regulator believes that the pressure on the consumer price index will decrease, it is unlikely to take any action regarding the interest rate.

Such as stance plays against the JPY in the medium term, as it leaves a high spread between the interest rates of the Bank of Japan and the US Federal Reserve.