Japanese Yen Bought Following BOJ Rate and Stimulus Decision
THE TAKEAWAY: Key interest rate maintained at 0.10% > Though the rate decision was expected, traders were caught off guard by the BOJ’s lack of stimulus expansion > USDJPY rose as high as ¥81.477
The Bank of Japan decided, as widely expected, to hold the country’s overnight rate at 0.10 percent, continuing its low interest rate policy for the 28th straight month.
Surprising analysts, however, was the BOJ’s lack of discussion regarding the expansion of its asset-purchasing, credit lending, and JBP purchasing programs. The market anticipated a continued increase to the BOJ’s stimulus programs, which had been a key factor in previous meetings.
After receiving the BOJ’s decision, traders adjusted their portfolios in favor of the Yen. The USDJPY hit peaks of ¥81.477 following the release.
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