The USD/JPY pair continues strengthening; results of today’s meeting of the Bank of Japan didn’t support the national currency.
The Japanese Yen remains under pressure against the USD. The current quote for the instrument is 113.48.
Another two-day meeting of the BoJ was over today. The main aspects of the regulator’s monetary policy remained unchanged: the key rate is still -0.1%. Also, policymakers kept the 10-year government bond yield target around zero percent, The QE program remained at ¥80 trillion every year.
In general, the monetary policy hasn’t changed over the last 15 months.
In the comments, the BoJ Governor, Mr. Kuroda, said that the inflation was still far away from the regulator’s target, that’s; why they intended to continue trying different monetary tools. The benchmark rate isn’t planned to be revised so far – the country’s economy is in a normal state and doesn’t need any stresses like this.
It quite interesting that the Bank of Japan is going to continue the QE program even after the inflation reaches the target. The Japanese Central Bank spends enormous amounts of money for the QE program by buying Japanese bonds, mostly. After the CPI reaches 2%, and it may happen in about a year, the program will continue so that the regulator could be confident of the country’s economy strength in order to prevent it from declining again.
RoboForex Analytical Department