BOJ to stand pat next week – Reuters sources

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    As per Reuters report, the Bank of Japan is set to keep key policy tools unchanged at next week’s rate review in order to curb bond market instability.

    The BOJ stunned markets January 29th by deciding to cut rates into negative territory. The decision led to 250-300 pip drop in Yen, which was quickly undone in the following three trading sessions. The move turned out to be a dud, since it failed to weaken Yen and prop up stock markets.

    Since then, speculation has been rife about the possibility of an expansion of QE program.

    Key points

    Negative rates have proved very powerful in pushing down bond yields

    The BOJ doesn't intend to keep cutting rates frequently at a set timing
    For more information, read our latest forex news.

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