- Previous vote: 12/20/2013
Held at 0% (official BoJ statement)
- Latest vote: 1/22/2014
Held at 0% (official BoJ statement)
- Next Meeting: 2/18/2014
- FOMC Maintains Course; USD/JPY Stalls Just Above 102
- Japan – Industrial Production m/m for March (preliminary reading): +0.3% (vs. expected +0.5%)
- Japan April manufacturing PMI data early: 49.4 (vs. 53.9 in March)
- BOJ Governor Says Inflation Might Beat Expectations
- Japan – Leading index for February (final): 108.9 (preliminary was 108.5)
- USD/JPY – Big Week for Japan
- Kuroda to avoid more easing says ex-BOJ official Sekido
- Bank of Japan (BOJ) Governor Kuroda: BOJ has no intention of monetising government debt
- Setting up a Trade Idea for USD/JPY (2/17/2014)
- USD/JPY – No Volatility as BOJ Announcement Falls Flat
- NZDJPY Stalling at Resistance, Offering 4.17 Reward/Risk
- Taking Another Shot on Going Long GBPJPY
- AUD Ready to Reverse? Hammer Off Support on AUDJPY
- Accumulation Occurring on GBPJPY?
- Going Long USDJPY — Again
- USD/JPY is playing catch up as yields lead the way
- USD/JPY – Yen Hits Three-Week Highs Against Struggling Dollar
- USD/JPY – Dollar Slips Below 102 in Thin Holiday Trade
- AUD/JPY Awaiting Consolidation Range Breakout
- Daily Forex Update: EUR/JPY
Jan. 22, 2014 – The BoJ maintained its rate of easing and stayed in the near 0% interest rate environment. Inflation is picking up.
“…On the price front, the year-on-year rate of increase in the consumer price index (CPI, all items less fresh food) is around 1¼ percent. Inflation expectations appear to be rising on the whole.
With regard to the outlook, Japan’s economy is expected to continue a moderate recovery as a trend, while it will be affected by the front-loaded increase and subsequent decline in demand prior to and after the consumption tax hike. The year-on-year rate of increase in the CPI, excluding the direct effects of the consumption tax hike, is likely to be around 1¼ percent for some time.
Compared with the forecasts presented in the October 2013 Outlook for Economic Activity and Prices, the growth rate and year-on-year rate of increase in the CPI will likely be broadly in line with the October forecasts.” Excerpt from the BoJ Statement.
Dec. 20, 2013 – The BoJ maintained interest rate and its pace of quantitative easing. In similar language, the bank stated:
…”The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen.
With regard to the asset purchases, the Bank will continue with the following guidelines:
a) The Bank will purchase Japanese government bonds (JGBs) so that their amount outstanding will increase at an annual pace of about 50 trillion yen, and the average remaining maturity of the Bank’s JGB purchases will be about seven years.” – Excerpt from the BoJ Statement
Learn about the Bank of Japan
Mandate: Maintain price stability and stability of the financial system. Deflation is the main obstacle to this mandate. It is more aggressive than most central banks in trying to weaken the JPY in order to boost exports.
According to its charter, the BoJ has the following responsibilities:
- Issuance and management of banknotes
- Implementation of monetary policy
- Providing settlement services and ensuring the stability of the financial system
- Treasury and government securities-related operations
- International activities
- Compilation of data, economic analyses and research activities
The chief of the bank has influence not only on the BoJ’s monetary policy but the economic policy of the Japanese government.
Haruhiko Kuroda took over the helm in March 2013, vowing to be aggressive in achieving price stability ie. fighting inflation.