Yen Little Changed as Bank of Japan Reshuffles Stimulus Funds
THE TAKEWAY: The Bank of Japan kept overnight borrowing rates unchanged at 0.10% and reshuffled stimulus measures > 5 trillion yen transferred to the asset purchase fund from the credit lending program > Japanese Yen initially declined, but quickly erased losses
The Bank of Japan decided to keep benchmark overnight lending rates unchanged at 0.10% while reallocating its credit lending and asset holding programs. The new measures will reallocate five trillion yen previously slated for credit lending over to the asset purchase program. The asset purchase fund will increase to 45 trillion yen from 40 trillion and the credit lending program will decrease to 25 trillion yen from 30 trillion.
The Japanese Yen initially lost ground to the Dollar but quickly recovered as markets likely digested the data to mean that the change in monetary easing measures were immaterial.
USD/JPY, 1 Minute Chart
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