BOJ keeps policy steady, USD/JPY little changed above 108.00

Dhwani Mehta FXStreet

On Thursday, the Bank of Japan (BOJ) monetary policy board concluded its 2-day July policy review meeting and decided to leave its monetary policy settings unadjusted, holding rates at -10bps while maintaining 10yr JGB yield target at 0.00%.

The BOJ vote was 8 to 1, leaving its pledge to buy JGBs unchanged so that its holdings increase at an annual pace of around 80 trln yen.

The decision on maintaining its interest rate targets was made by a 7-2 vote with board members Goushi Kataoka and Yutaka Harada dissenting.

The central bank left its forward guidance unchanged, adopted in April that said "will keep very low-interest rates levels for an extended period of time at least through around spring 2020."

The Yen failed to react to the BOJ announcement, keeping the USD/JPY pair in a familiar range around 108.15 region, -0.25% on the day.

About BOJ Interest Rate Decision

BoJ Interest Rate Decision is announced by the Bank of Japan. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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