Bank of Japan Two Day Policy Meeting Begins Monday

The Bank of Japan started a two-day policy meeting Monday, with discussions likely to focus on ways to ease volatility in the government bond market including providing longer-term loans to financial institutions.

The nine-member Policy Board is expected to consider extending the term of its low-interest-rate fund provision operation from up to one year to two years or longer to increase liquidity in the market to contain an unwanted spike in interest rates that could impede an economic recovery.

As for its aggressive monetary easing policy introduced in April, the central bank is likely to keep intact measures centering on doubling the monetary base and boosting the purchase of government bonds.

The BOJ may upgrade its current economic assessment if it confirmed a pickup in corporate production activities, observers say.

Earlier Monday, the government revised upward the January-March gross domestic product data to an annualized growth of 4.1 percent, up from the initially reported 3.5 percent in inflation-adjusted terms, on the back of an upward revision to business investment.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza