Bank of Japan has unanimously decided earlier today to maintain its key rate at 0.10 per cent according to its Monetary Policy Statement. As the BOJ reported, “Overseas economies on the whole still have not emerged from deceleration phase, but have shown some, albeit moderate, improvement”, while internally it is recognizing some increase in the economic activity. Concerning inflation the BOJ said the CPI is around 0 per cent and is expected to remain at that level on a yearly basis. Lastly, the BOJ said “Japan’s economy faces the critical challenge of overcoming deflation” and “The Bank continues to conduct monetary policy in an appropriate manner”.
The Japanese Yen strengthened after the release, the USDJPY fell from 79.78 to 78.77, violating support at 79.12, that has been holding its ground for the last 10 days.