The Bank of Japan (BOJ) on Friday kept monetary settings unchanged, but revamped its guidance on the future path of policy, and decided to conduct a 'broad-perspective' review of its monetary policy.As widely expected, the BOJ kept intact its short-term interest rate target at -0.1 per cent and that for t
The Bank of Japan on Friday kept monetary settings unchanged, but revamped its guidance on the future path of policy, and decided to conduct a"broad-perspective" review of its monetary policy.
As widely expected, the BOJ kept intact its short-term interest rate target at -0.1 per cent and that for the 10-year bond yield around 0 per cent at the two-day meeting that ended on Friday.The yen fell about 0.6 per cent to a one-week low of 134.87 per dollar, while Japanese government bonds rallied.
Japan's Nikkei share average rose more than 1 per cent to reach a new intraday high at 28,786.07, after the BOJ left its ultra-easy monetary policy settings unchanged.CHARU CHANANA, MARKET STRATEGIST, SAXO MARKETS, SINGAPORE "The wait for the announcement sparked quite a bit of volatility in the yen and rising expectations that we will get a tweak. But eventually, even their announcement of a policy review came with a 1-1.5-year timespan, which was longer than what market expected even as inflation forecasts were raised across the board. Looks like Japanese yen would go back to being a Treasury yield story for now.""The policy review is in line with our expectations for policy assessment.
"BOJ did upgrade the inflation forecasts, but at the same time, I think the hopes of a policy change has been somewhat dampened by the review, which is expected to last one to one-and-a-half years ... That might have dampened hopes of an imminent move in the policy setting."
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