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BoJ more aggressive than sky-high-expectation

FXstreet.com (Barcelona) - The long awaited first Bank of Japan's meeting under Haruhiko Kuroda's surveillance has been published, with the bank announcing the implementation of the following monetary policies:

- Bank of Japan will double its monetary base thru JGBs and ETFs in 2 years. The decision was unanimous

- Merger asset program with regular bond buys

- Purchases of assets extended from 3-year maturities to 7/8-years maturity

- JGBs Of all maturities open as future options for purchase

- BOJ will buy over 7 trillion yen worth of bonds each month.

- Target on bond buying would expand monetary base to the point of reaching Y270 trillion by 2014

- BOJ will increase JGB holdings at Y50T/year

- Suspension of the 'Banknote Rule' temporarily

- Introduction of 'Quantitative and Qualitative Monetary Easing'

- Decision to keep ultra-easing policy until 2% inflation is achieved sustainably approved by 8-1. BoJ member Kiuchi dissented.

Forex: USD/JPY jumps above 93.5 as BoJ delivers

After a long waiting period since the official delivery time, BoJ has finally released the monetary policy statement, and USD/JPY spikes from near session lows at 92.90 to current session highs at 93.35 and moving higher. The pair is still -0.8% lower for the week so far, while Nikkei -1.12% for the day.
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Session Recap: BoJ beats expectations; Yen resumes bear moves

The main theme in Asia, while it occurred very late, was the more aggressive-than-expected BoJ monetary policy decision, with the central bank over-delivering on its commitment to beat inflation.
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