THE TAKEAWAY: Bank of Japan maintains overnight rate at 0.10 percent. Since bank action meets expectations, USDJPY exchange rate unaffected by news report.
As expected, the Bank of Japan reported that their overnight rate will remain at zero to 0.10 percent. In addition, they decided to keep the stimulus programs unchanged. Included in that list are the asset-purchase fund held at 20 trillion yen, the credit-loan program at 35 trillion yen, and the JGB purchases at 1.8 trillion yen. Coming with a greater degree of surprise were the changes in the GDP growth estimate changes for 2012 and 2013. For 2012, the central bank cut its estimate to 2.0percent, down from 2.2 percent projected in October. For 2013, the revision was positive from 1.5percent in October to 1.6percent today.
Trading was unaffected by Bank of Japan news report, and USDJPY is left without a prevailing trend.
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