Disappointed! This is the reaction of investors after the BOJ decision
<p> Closing the curtain on this week's central bank meeting, the Bank of Japan (BOJ) decided to keep interest rates unchanged at the September policy meeting that just took place.</p><p><br /></p><p>The results are in line with market expectations that negative interest rates remain at -0.10% and the target yield on Japan's 10-year government bonds is around 0%.</p><p><br /></p><p>The central bank also made no changes to its guidance allowing 10-year bond yields to move within a range of +/-0.50%, as well as the new 1.0% limit adopted in July.</p><p><br /></p><p>Following the decision, the yen reacted early by falling to 148.00 against the stronger US dollar.</p><p><br /></p><p>In its follow-up statement the BOJ said that the Japanese economy is likely to continue to recover modestly and that inflation expectations have shown signs of rising.</p><p><br /></p><p><br /></p><p>The central bank also maintained its stance, vowing to take additional easing measures without hesitation.</p><p><br /></p><p>Even so, markets are still hopeful of Governor Kazuo Ueda's earlier signal of a policy shift.</p><p><br /></p><p>Investors' focus is now focused on Ueda's follow-up statement this evening on the decision taken by the BOJ today.</p><p><br /></p><p>Meanwhile, data released before the meeting showed Japan's core inflation reached 3.1% in August, remaining above the central bank's 2% target for the 17th consecutive month.</p>
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