Japan's Central Bank Keeps Measures in Place, But Remains Ready to Act (EWJ) (FXY)
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The Bank of Japan held off on stimulus measures Tuesday, but maintained the stance that it would intervene if borrowing costs rise again.
Japan central bank governor Haruhiko Kuroda commented, "We remain vigilant to long-term interest rate moves. It's undesirable for volatility to heighten, so we'll make efforts to reduce it."
As announced on April 4th, the central bank plans about 60¥ trillion to 70¥ trillion of open market activity this year as it aims to bring inflation up to 2 percent within two years. The goal is to reduce long-term rates, which may spur an increase in consumption.
The move follows new data out on Monday showing a moderate improvement in Japan's economy. Current account surplus showed strong improvement while lending was also picking up.
On the news, the yen is showing strong gains, up about 2 percent on the dollar.
Japan central bank governor Haruhiko Kuroda commented, "We remain vigilant to long-term interest rate moves. It's undesirable for volatility to heighten, so we'll make efforts to reduce it."
As announced on April 4th, the central bank plans about 60¥ trillion to 70¥ trillion of open market activity this year as it aims to bring inflation up to 2 percent within two years. The goal is to reduce long-term rates, which may spur an increase in consumption.
The move follows new data out on Monday showing a moderate improvement in Japan's economy. Current account surplus showed strong improvement while lending was also picking up.
On the news, the yen is showing strong gains, up about 2 percent on the dollar.
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