The Yen rose sharply. Overview for 21.09.2016
21.09.2016
On Wednesday morning, the USD/JPY pair is falling after the meeting of the BoJ.
In the middle of the week, the Japanese Yen is growing in the pair with the US dollar. The current quote for the instrument is 102.63.
The key parameters of the regulator’s monetary policy remained unchanged, despite market expectations. But after all, the Yen found a reason to strengthen: the Bank of Japan announced that it was ready to implement additional easing in the form of the negative deposit rate.
As explained by the BoJ, the money stock will expand until the inflation reaches the target of 2%. According to calculations, over the year the money stock may increase up to 100% of the country’s nominal GDP. It’s required for strengthening of the influence on the inflation, if standard measures are nor efficient.
The targeted purchase volume of the Japanese government bonds remained at 80 trillion Yens annually; ETF purchases also remained unchanged at 6 trillion Yens every year.
In the future, the Bank of Japan will use the deposit rates. This approach is quite interesting as well, because earlier the negative deposit rates were thought to be a short-term measure. So far, the experience has shown that this measure is not so bad for the Japanese economy and might be allowed to continue in the future.
RoboForex Analytical Department
In the middle of the week, the Japanese Yen is growing in the pair with the US dollar. The current quote for the instrument is 102.63.
The key parameters of the regulator’s monetary policy remained unchanged, despite market expectations. But after all, the Yen found a reason to strengthen: the Bank of Japan announced that it was ready to implement additional easing in the form of the negative deposit rate.
As explained by the BoJ, the money stock will expand until the inflation reaches the target of 2%. According to calculations, over the year the money stock may increase up to 100% of the country’s nominal GDP. It’s required for strengthening of the influence on the inflation, if standard measures are nor efficient.
The targeted purchase volume of the Japanese government bonds remained at 80 trillion Yens annually; ETF purchases also remained unchanged at 6 trillion Yens every year.
In the future, the Bank of Japan will use the deposit rates. This approach is quite interesting as well, because earlier the negative deposit rates were thought to be a short-term measure. So far, the experience has shown that this measure is not so bad for the Japanese economy and might be allowed to continue in the future.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.