On Thursday, the Bank of Japan (BOJ) monetary policy board concluded its 2-day July policy review meeting and decided to leave its monetary policy settings unadjusted, holding rates at -10bps while maintaining 10yr JGB yield target at 0.00%.
The BOJ vote was 8 to 1, leaving its pledge to buy JGBs unchanged so that its holdings increase at an annual pace of around 80 trln yen.
The decision on maintaining its interest rate targets was made by a 7-2 vote with board members Goushi Kataoka and Yutaka Harada dissenting.
The central bank modified its forward guidance on interest rates, citing that it will more clearly signal future chance of rate cut.
The Yen was unfazed by the BOJ announcement, leaving the USD/JPY pair in a familiar range around 108.65 region, -0.15% on the day.
About BOJ Interest Rate Decision
BoJ Interest Rate Decision is announced by the Bank of Japan. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.
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