- BoJ keeps overnight call rate target unchanged at 0-0.1% by unanimous vote.
- Japan's economy has been weakening somewhat, keeps assessment unchanged.
- Japan's economy to remain relatively weak for time being and then return to moderate recovery.
- Exports and output have decreased mainly due to slowdown in overseas growth.
- Capital expenditure has shown some weakness in manufacturing sector.
- Will pursue powerful monetary easing continuously through virtually zero rates, steady increase in asset buying programme.
Reaction details (04:26)
- USD/JPY immediately moved lower 6 pips from 81.21 to 81.15 however in the minutes after, it bounced back, currently trades 81.26 (-15pips) last.
Analysis details (04:30)
- It was expected that the Bank of Japan would stand pat on monetary policy with no additions to their asset purchase program and no rate change.
- Today's announcement also comes ahead of Japan's December 16th election where the opposition are campaigning for a change to the Bank of Japan's law so that the central bank can purchase construction bonds and effectively fund the countries deficit.
20 Nov 2012 - 04:14 - - Source: Newswires
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