BOJ will cut interest rate further if necessary

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Bali) - BOJ will cut interest rate further into negative territory if judged necessary, Reuters reports.

    Key Quotes

    BOJ to charge interest for excess reserves financial institutions park with BOJ

    Will cut interest rate further into negative territory if judged necessary

    Negative interest rate will be adopted in tandem with QQE

    No change in BOJ's base money target of 80 trln yen

    Will introduce 3-tier system on rates

    Will aim to lower short end of yield curve, exert further downward pressure on rates via combination of negative rate, large-scale JGB buying

    BOJ pushes back timing for achieving its 2 pct inflation target in quarterly report

    Japan CPI likely to reach 2 pct in first half of fiscal 2017/18

    Will adopt zero rate for its loan support programme, fund-supplying operations

    Makes no change in pace of JGB, ETF, J-REIT purchases

    Will examine risks to econ, prices, take additional easing steps if needed using quantity, quality, and interest rate

    Acted to preempt manifestation of risk of market volatility hurting business confidence
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