The Bank of Japan (BoJ) minutes for the December meeting are out as follows:
One member said inappropriate to tweak policy target.
One member said there could be room to debate how rigidly BoJ should interpret price target.
One member said BoJ must conduct review of its policy framework at some point in the future.
One member said must ensure market players are prepared against risk associated with rate hike, when time for ending BoJ's easy policy comes.
Several members said effect of powerful monetary easing will continue even if BoJ widens band around its yield target.
One member said BoJ must humbly look at how much tweak to YCC will help improve market function.
A few members said BoJ must clearly explain widening of yield band is not a move eyeing exit from ultra-loose policy.
Govt rep said slowing overseas growth is a risk to japan's economy, must scrutinise impact of rising inflation, supply constraints and market volatility.
Govt representative requested recess during meeting, which chair approved.
Govt rep said "understands today's debate was about steps to make monetary easing more sustainable".
Govt rep said hopes BoJ continues to strive towards achieving price target in stable, sustainable manner.
USD/JPY update
The Bank of Japan (BoJ) maintained its key short-term interest rate at -0.1% and that for 10-year bond yields around 0% during its January meeting by a unanimous vote while keeping its 0.5% cap for bond buying.
This was a surprise to investors as policymakers were said not to be seeking a looser grip on bond yields after the unexpected tweak of the yield curve control range in December. Instead, the BoJ reiterated it would take extra easing measures if needed. The central bank also explain that short-and long-term policy interest rates would stay at their present or lower levels which helped to keep USD/JPY buoyed above critical support:
About the BoJ minutes
The Bank of Japan publishes a study of economic movements in Japan after the actual meeting. These meetings are held to review economic developments inside and outside of Japan and indicate a sign of new fiscal policy. Any changes in this report tend to affect the JPY volatility. Generally speaking, if the BoJ minutes show a hawkish outlook, that is seen as positive (or bullish) for the JPY, while a dovish outlook is seen as negative (or bearish).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.