Bank of Japan (BoJ) news

The Bank of Japan (BoJ) is the central bank of Japan. It conducts monetary policy to achieve price stability and financial system stability. The BoJ employs various tools, including quantitative easing and yield curve control, to influence economic activity and promote sustainable growth in Japan.

NZD/JPY: JPY crosses under downside pressure after BoJ’s hawkish guidance

Japanese Government Bond (JGB) yields on the upmove ex-post BoJ. Positive yield premium shrinkage (JGB over the rest of the world) may put further downside pressure on JPY crosses carry trades. Watch NZD/JPY where RBNZ may reduce its hawkish rhetoric reinforced by NZ Q4’s soft inflation data. This is a follow-up analysis of our prior report, “BoJ poised to offer guidance on the removal of short-term negative rates may spark JPY strength” published on 22 January 2024. Click here for a recap.

24-01-2024 01:12 GMT by Kelvin Wong

GBP/JPY - Remains near highs as the BoJ stands pat in January

BoJ leaves the policy rate unchanged at -0.1% Maintains 10-year JGB yield target around 0% with a flexible buffer of 1% GBPJPY hangs around recent highs despite hints at future rate moves The Bank of Japan opted to leave interest rates and its yield curve control policy unchanged today, indicating a decision on negative rates may come at one of the upcoming meetings. It was always likely that no decision would be taken today as the central bank awaits the outcome of the spring wage negot

23-01-2024 08:50 GMT by Craig Erlam