Talking Points:
- Bank of Japan Keeps Monetary Base Target Unchanged at ¥270 Trillion
- BOJ: Moderate Recovery Seen Despite Tax Hike, Inflation Stable at 1.25%
- Yen Little-Changed as BOJ Announcement Lacks Surprises for Traders
The Japanese yen remained broadly unchanged against its major global counterparts after the Bank of Japan delivered its monetary policy announcement. The central bank maintained its monetary base target at ¥270 trillion and stuck with the pledge to increase it by ¥60 to ¥70 trillion each year, as expected.Officials restated that monetary easing was having its intended effect and saw the inflation rate stable around 1.25 percent for the time being. The Bank also maintained their expectations of a moderate recovery in the economy, despite this year’s sales tax hike.
The yen’s limited response to the policy announcement likely reflected the outcome’s alignment with priced-in expectations. Governor Kuroda and company did not deliver anything materially different from the status-quo this time around, offering no meaningful impetus for traders to readjust their positions.
