The Yen is losing to the USD. Overview for 27.04.2021
USDJPY is rising on Tuesday after the BoJ meeting.
The Japanese Yen reversed and is falling against the USD on Tuesday morning. The current quote for the instrument is 108.22.
The April meeting of the Bank of Japan was over in the morning and all key parameters of the regulator’s monetary policy remained intact. The benchmark rate has been -0.1% since January 2016. In the comments, the BoJ said that it was going to continue targeting the 10-year Japanese government bond yield at around 0%. In addition to that, policymakers will continue purchasing government bonds without any limitations.
Also, the Bank will purchase CP and corporate bonds with an upper limit on the amount outstanding of about 20 trillion yen in total until the end of September 2021.
Overall, the total annual volume of bonds to be bought by the regulator is about 12 trillion yen.
In other words, the regulator continues monitoring the situation and doesn’t change anything in its monetary policy, although it should admit that the time for that came a long time ago.
Among other interesting things is the BoJ’s revision of some aspects of its economic outlook. For example, the GDP growth for 2021 and 2022 went from 3.9% and 1.8% to 4.0% and 2.4% respectively. the Core CPI is expected to be 0.1% against the previous estimate of 0.5%. In 2022 and 2023, it might show 0.8% and 1.0% respectively.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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