BoJ expects weak inflation

Note: This section contains information in English only.
Source: Dukascopy Bank SA
On April 27, the Bank of Japan released its rate statement. However, it did not cause any significant moves. The USD/JPY currency pair lost only 4 pips on the 10M time-frame chart. Afterwards, the pair continued to appreciate.

According to the report, no considerable changes in monetary policy were made. The Japanese policymakers decided to keep the Policy Rate unchanged. In the meantime, the bank predicts weak inflation.

Quoting the reports key points: "The Bank will apply a negative interest rate of minus 0.1 percent to the Policy-Rate Balances in current accounts held by financial institutions at the Bank.

The Bank will purchase a necessary amount of Japanese government bonds (JGBs) without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

The Bank will continue with Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner. It will continue expanding the monetary base until the year-on-year rate of increase in the observed consumer price index (CPI, all items less fresh food) exceeds 2 percent and stays above the target in a stable manner."

Full Official Release

Monetary Policy Report

In the immediate aftermath after the statement, the USD/JPY declined only 4 pips.

Initial Reaction

Larger scale situation

Back to articles

Actual Topics

Thu, 29 Apr 2021 09:45:00 GMT

US Dollar falls on FOMC Statement

On April 28, the Federal Reserve (Fed) issued FOMC Statement. As the result, the US Dollar lost 61 pips against the European Common Currency. The Fed voted to keep the Federal Funds Rate unchanged at <0.25%. Also, the US policymakers are now expecting the inflation rate to increase noticeably above 2%. Quoting the reports key points:"The COVID-19 pandemic is causing

Thu, 22 Apr 2021 17:26:31 GMT

26.04.-30.04. Event Historical Reactions

In total, during the week, seven data sets at six various times are suggested to be watched by Dukascopy Analytics. Among them, the top one is expected to be the US Federal Reserve's Foreign Open Market Committee's Statement. The week's events are set to start on Wednesday. At 12:30 GMT the Canadian Retail Sales and Core Retail Sales are expected to

Subscribe to "Fundamental Analysis" feed

Souscrire
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.