BOJ Policy Unchanged and Optimistic About Japanese Economy

December 20, 2016 Share Print 0

The Bank of Japan on Tuesday stood pat and expressed a more optimistic view on the country’s economy with exports picking up on a weaker yen after Donald Trump’s U.S. election win, dampening speculation of further monetary stimulus anytime soon.

BOJ Governor Haruhiko Kuroda, however, voiced reluctance to raise the central bank’s government debt yield target in the near future, despite recent increases in Japan’s long-term interest rates in tandem with rising U.S. Treasury yields.

“Promoting powerful monetary easing under the current policy is most appropriate” to pave the way for achieving a 2 percent inflation target,” Kuroda said at a press conference following a two-day meeting of the bank’s policy board.

“Yield curve control” policy has “functioned well” since it was introduced in September, Kuroda said, indicating the BOJ will maintain efforts to push down long-term interest rates.

via Mainichi

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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.