Danske Bank analysts note that with a 7-2 vote, the Bank of Japan (BoJ) this morning kept its Quantitative and Qualitative Easing (QQE) with yield curve control and forward guidance unchanged.
Key Quotes
“The BoJ remains in wait-and-see mode but recognises that risks from overseas economies continue to increase and now judges that it is becoming necessary to pay closer attention to the possibility that the momentum towards achieving the price stability target will be lost. If the outlook sours further and fosters JPY strengthening, the BoJ could take action in October by cutting the policy rate further into negative as the first line of defence. USD/JPY fell below 108 as markets had seen some chance of BoJ easing already today.”
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