The Japanese yen was very weak today after the Bank of Japan maintained monetary accommodation unchanged and boosted the lending program, increasing its term at the same time.
The BoJ maintained its asset purchase program at ¥60–70 trillion at today’s policy meeting. The central bank also announced:
The Policy Board also decided, by a unanimous vote, to double the scale of (i) the Fund-Provisioning Measure to Stimulate Bank Lending (hereafter “Stimulating Bank Lending Facility”) and (ii) the Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth (hereafter “Growth-Supporting Funding Facility”), and to extend the application period for these facilities by one year.
Policy makers kept the inflation target at 2 percent, expecting growth of consumer prices to stay at 1.25 percent “for some time”.
USD/JPY rose from 101.91 to 102.41 and EUR/JPY climbed from 139.67 to 140.77 as of 13:39 GMT today.
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