FxWirePro: USD/JPY Slumps As BoJ Disappoints Markets With No Change in Policy
- USD/JPY slumped from around 111.70 levels to 108.74 after Bank of Japan decided to stand put, keeping the policy unchanged, with the interest rate at -0.1%.
- The bank announced a lian support program for banks in areas hit by the recent earthquake. Total amount of loans for new fund supply operation is set at 300 bln yen.
- he central bank said Japan economy is likely to expand moderately and consumer inflation to hit 2 pct during fiscal 2017.
- The Central Bank cautioned about the risk that market uncertainty, slowdown in emerging markets could hurt business confidence.
- The yen jolted nearly 200-pips higher versus the American dollar in a knee-jerk reaction and has recovered slightly to trade at 109.38 levels.
- Markets now await BOJ Chief Kuroda’s presser for more insights on today’s monetary policy stance.
The material has been provided by InstaForex Company - www.instaforex.com