The Bank of Japan (BoJ) board members decided to make no changes to their current policy settings, following its December monetary policy review meeting on Tuesday.
The Japanese central bank held the interest rate and 10-year JGB yield target steady at -10bps and 0% respectively.
The BoJ left the forward guidance on monetary policy unchanged.
Summary of the BoJ policy statement
BoJ keeps unchanged 1.0% reference rate for 10-year JGB yield.
Economy has recovered moderately.
Private consumption continues to rise moderately.
YoY rate of rise in CPI slower than a while ago mainly due to effects of pushing down energy prices.
But cpi has been around 3% recently due to pass-through of cost increases to consumer prices.
Inflation expectations have risen moderately.
Economy likely to continue recovering moderately for time being.
Japan economy projected to continue growing at pace above potential growth rate.
Rate of rise in CPI likely to be above 2% through fiscal 2024.
Thereafter, rate of rise projected to slow down.
Underlying CPI inflation likely to increase gradually toward achieving price stability target.
more to come …
USD/JPY reaction to the BoJ policy announcements
USD/JPY rallied over one big figure following the BoJ’s policy announcements. The pair is currently trading at 143.60, up 0.60% on the day, having tested 143.75 in a knee-jerk reaction to the BoJ decision.
USD/JPY: 15-minutes chart
Japanese Yen price today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the Australian Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.01% | -0.04% | -0.01% | -0.21% | 0.53% | -0.15% | 0.00% | |
| EUR | 0.00% | -0.04% | 0.00% | -0.21% | 0.53% | -0.15% | 0.01% | |
| GBP | 0.04% | 0.04% | 0.03% | -0.17% | 0.58% | -0.12% | 0.04% | |
| CAD | 0.03% | 0.03% | -0.01% | -0.18% | 0.55% | -0.12% | 0.03% | |
| AUD | 0.23% | 0.25% | 0.21% | 0.23% | 0.74% | 0.06% | 0.24% | |
| JPY | -0.48% | -0.46% | -0.53% | -0.49% | -0.70% | -0.63% | -0.48% | |
| NZD | 0.19% | 0.19% | 0.12% | 0.17% | -0.03% | 0.71% | 0.18% | |
| CHF | 0.00% | -0.01% | -0.04% | 0.00% | -0.21% | 0.52% | -0.15% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Source: https://www.fxstreet.com/news/breaking-bank-of-japan-keeps-policy-settings-and-forward-guidance-unchanged-202312190252