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Bank of Japan leaves monetary policy unchanged, yen gains.

Posted by Chris Advincula on Apr 26, 2013 12:50:00 AM

April 26 Friday 5:30 GMT


The Bank of Japan monetary board voted unanimously to leave their monetary policy target unchanged. The yen gains in the early European trading hours.

"The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about 60 to 70 trillion yen," the BOJ said in a brief statement.

The monetary board focused their efforts to achieve its new target of boosting the annual consumer inflation rate to 2 percent from around zero now at the earliest possible time in two years.

The BOJ will double the monetary base (from 138 trillion to 270 trillion yen) and the amounts outstanding of Japanese government bonds (from 89 trillion to 190 trillion yen) as well as exchange-traded funds (from 1.5 trillion to 3.5 trillion) in two years.

The BOJ policy board changed its monetary policy strategy by targeting the amount of the monetary base at its prior meeting on April 3-4, instead of the level of overnight lending rates among commercial banks.

Dollar-yen fell 80 pips to 98.25 from 99.05 while Euro-yen fell 104 pips to 128.10 from 129.14 as the European market assimilates the BOJ monetary policy news.

 

Chris Advincula

WorldWideMarkets

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Charts: FXTrek.com

 

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