News Headline Summary

The BoJ keeps monetary policy unchanged and retains plan for JPY 60-70trl annual rise in monetary base

- BoJ says will disperse loans totalling JPY 3.15trl to 70 financial institutions under its loan scheme.
- BoJ says to lend JPY 2.54trl to 8 major banks and JPY 611.9bln to 62 regional banks.
- BoJ is to offer JPY 2.96trl 3 year loans and JPY 191.4bln 1 year loans.
- BoJ refrains from expanding J-REIT and ETF purchases.
- Leaves funding terms unchanged after JGB yield volatility.
- BoJ says will continue easing until 2% inflation target is reached.
- Will make policy adjustments as needed.
- BoJ says CPI likely to gradually turn positive.
- BoJ refrains from extending duration of fixed rate fund-supplying operation.
- BoJ board member Kiuchi proposed making 2% inflation target a medium to long-term goal.
- Kiuchi's proposal was turned down by 8-1 vote.
- BoJ said Japan's economy has been picking up and that it is expected to return to a moderate recovery path.

Reaction details (04:03)

- USD/JPY immediately moved lower by 36 pips from 98.64 to 98.28.
- In the 3 minutes after the announcement, USD/JPY trades 97.90, for a total move lower of 74 pips.

Analysis details (04:07)

- No extension of the duration of loans under the fixed rate fund-supplying operation was a disappointment as it was widely expected to happen.

11 Jun 2013 - 03:48 - - Source: Newswires

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