Home Forex Markets The Bank of Japan’s March interest rate decision: to keep interest rates unchanged, the dollar/yen rises above the 119 mark or it is only a matter of time

The Bank of Japan’s March interest rate decision: to keep interest rates unchanged, the dollar/yen rises above the 119 mark or it is only a matter of time

by WOOWinvest
0 comment
日本央行3月利率决议:维持利率不变,美元/日圆涨破119关口或只是时间问题


The Bank of Japan announced its March interest rate decision and kept the interest rate unchanged at -0.1%. The Bank of Japan changed its wording on inflation, saying that inflation may rise significantly in the near future. USD/JPY has little short-term fluctuations, and is still oscillating below the 119.00 mark

During the Asia-Pacific trading session on Friday, the Bank of Japan announced its March interest rate decision, keeping the benchmark interest rate unchanged at -0.1%, in line with market expectations.

On the economic front, the Bank of Japan lowered its assessment of the overall economy. The economy may recover, but some areas of the economy are weak. Consumption, employment and income declined. Therefore, the Bank of Japan kept its interest rate guidance unchanged and continued to implement quantitative easing through yield curve control, maintaining the Bank of Japan’s long-standing and consistent stance of extreme easing.

It is worth noting that, similar to the last interest rate decision in January, the Bank of Japan continued to emphasize the risk of rising inflation in this interest rate decision. Due to the soaring commodity prices caused by the outbreak of the Russian-Ukrainian conflict, the CPI may rise significantly in the near future. Therefore, the Bank of Japan adjusted the wording of inflation expectations, indicating that inflation expectations have risen moderately.

Overall, the Bank of Japan’s March interest rate decision did not cause surprises, and the Bank of Japan’s extremely dovish policy stance remained unchanged. Therefore, after the announcement of the decision, the USD/JPY fluctuated little in the short-term and remained below the 119.00 mark. The Nikkei 225 also maintained gains.

Before the Bank of Japan’s interest rate decision, the Federal Reserve announced its interest rate decision in the early hours of Thursday, Beijing time, announcing a 25 basis point interest rate hike, raising the target range for the federal funds rate to 0.25%-0.5%. This further widened the divergence in policy paths between the BOJ and the Fed. The long-term outlook for USD/JPY will remain bullish from a fundamental interest rate perspective as the market expects the Fed to raise interest rates seven times this year.

USD/JPY has now risen to its highest level since late 2016, and although the pair is temporarily capped at 119.00, it may only be a matter of time before this resistance is broken. After breaking above this level, USD/JPY could rise further towards the 120.00-121.70 range.

USD/JPY 4-hour chart

The content on this page is for general market commentary only and may not constitute investment advice of any kind (tax, legal, accounting). This article does not constitute an invitation or recommendation for direct investment in specific financial products. The content is for reference only. Readers should not rely on the information in this document, nor should its actions and omissions be relied upon. We are not responsible for the results of any person’s actions or omissions based on this article. We make no warranties as to the accuracy of the content provided or the adequacy of the information. This article is not intended for distribution within the territory of the People’s Republic of China (excluding Hong Kong, Macau and Taiwan for this purpose), except as permitted by the applicable laws of the People’s Republic of China.

Copyright Notice: Except for the purpose of viewing the information on this website, or as permitted by applicable law or these terms and conditions, no one may copy, use, upload, link, or publicly perform in any way to third parties without our specific written permission , publish or transmit any information or content on this website. We reserve the right to further investigate the legal responsibility of the relevant actors for the infringement of unauthorized reprinting. If you have business cooperation needs such as market promotion and resource exchange, please contact us.

element inside the element. This is probably not what you meant to do! Load your application’s JavaScript bundle inside the element instead.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy