(JP) BANK OF JAPAN (BOJ) LEAVES TARGET RATE RANGE UNCHANGED BETWEEN 0.0% TO 0.10% (AS EXPECTED)
What does this mean?
BOJ answered Fitch Rating’s downgrade of its Sovereign Credit Cut by stating that “(Fitch) needed to measure effects of easing by interest rates and not by the size of monetary base”, in essence, making commitments to further its easing policy while asserting the central banks independence to credit rating agencies’ influences.
This is definitely going to add further demand for JPY as BOJ is missing the point by getting into a pissing match with Fitch. I believe unless the situation in Europe changes or BOJ decides to intervene, JPY will remain strong.
BOJ Slaps Fitch In The Face…
May 23, 2012 by Leave a Comment