BOJ Slaps Fitch In The Face…


(JP) Japan BOJ Gov Shirakawa post rate decision press conference noted that the central bank had no change to its stance of pursuing powerful easing. He added that he saw big demerits to further rate cuts including cutting the 0.5% interest paid to excess reserves and needed to measure effects of easing by interest rates and not by size of monetary base. He did not see immediate risk of BOJ failing to meet asset purchase target. The tail risk regarding European debt woes was at forefront in his opinion. 

Newsletter

Zero spam.

(JP) BANK OF JAPAN (BOJ) LEAVES TARGET RATE RANGE UNCHANGED BETWEEN 0.0% TO 0.10% (AS EXPECTED)

  • Keeps economic assessment unchanged
  • Maintains asset purchase fund at ¥70T

What does this mean?

3rd Party Advertisement

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.

 

FUNDAMENTALS
Forex Weekly Outlook September 18 ~ 22, 2017
Forex Weekly Outlook August 14 ~ 18, 2017
Forex Weekly Outlook August 7 ~ 11, 2017
Forex Weekly Outlook July 3 ~ 7, 2017
Forex Weekly Outlook June 19 ~ 23, 2017
About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

Speak Your Mind

*

Newsletter

Zero spam.