- The Bank of Japan
The Japanese Yen posted further gains versus other major currencies on Wednesday, with USD/JPY trading around 101.23, almost at the highest level in three months. The Yen benefited from the stronger-than-expected GDP report earlier this month, as well as from the other reports that suggested the economy is ready to withstand the tax hike. Moreover, the Bank of Japan added fuel to the fire and pushed the currency higher, by staying pat on the monetary policy and providing a brighter view on capital spending.
With no surprises to investors the Bank of Japan left its monetary policy unchanged, with intention to expand the monetary base by about 60-70 trillion yen per year. Policymakers also claimed that since the launch of the unprecedented stimulus programme, the policy has been helping the economy, supporting the positive tone earlier expressed by Haruhiko Kuroda. Moreover, risks of lower employment, claimed by one of the members Sayuri Shirai, no longer appeared in the statement.
Finally, the Bank of Japan raised its assessment of capital expenditures, suggesting the economy will continue building up steam. Investment is vital for the economy, especially keeping in mind the fact experts do not expect any rapid rebound in exports amid sluggish demand from other Asian economies.
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