Breaking: Bank of Japan keeps policy steady, tweaks forward guidance, yen at fresh session lows, 129.52+
The Bank of Japan was expected and has maintained its key interest rates at today’s meeting, continuing to defend low rates with bond-buying but is uber dovish and pessimistic in its guidance.
The yen is now pushed above 129 the figure and that is where it will need to stay for a convincing prospect of a continuation for the foreseeable future.
BoJ decision, statement & outlook
What we know so far, as comments and statements are dripped fed through the wires vs Reuters as follows...
- BOJ LEAVES UNCHANGED ITS FORWARD GUIDANCE ON INTEREST RATES, SAYS EXPECTS SHORT- AND LONG-TERM POLICY RATES TO REMAIN AT 'PRESENT OR LOWER' LEVELS
- 27-Apr-2022 21:09:32 - BOJ TWEAKS FORWARD GUIDANCE ON MONETARY POLICY BIAS
- 27-Apr-2022 21:10:39 - BOJ: BOJ WILL EASE POLICY WITHOUT HESITATION AS NEEDED WITH EYE ON PANDEMIC IMPACT, WHILE STRIVING TO SUSTAIN MARKET STABILITY AND SUPPORT CORPORATE FUNDING
- 27-Apr-2022 21:11:04 - BOJ CLARIFIES OPERATION ON UNLIMITED FIXED RATE BOND BUYING
- 27-Apr-2022 21:11:47 - BOJ: WILL OFFER TO BUY 10-YEAR JGB AT 0.25% EVERY BUSINESS DAY VIA FIXED RATE OPERATIONS UNLESS IT IS HIGHLY LIKELY THAT NO BIDS WILL BE SUBMITTED
More to come...
USD/JPY update
Prior to the decision, the yen was on the backfoot, testing hourly resistance:
The pair was already breaking the ceiling of the bull-flag n the daily chart:
Meanwhile, the yen has dropped and is now through 129 the figure, scoring a high of 129.47 so far:
About the BoJ interest rate decision
BoJ Interest Rate Decision is announced by the Bank of Japan. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.