Japanese Yen Higher After BOJ Maintains Monetary Base Target at ¥270T

DailyFX

THE TAKEAWAY:BOJ maintains monetary policy, sees moderate economic growth > Revises CPI and GDP growth forecasts > USD/JPY Edges Lower

The Japanese Yen edged higher against the US Dollar after the Bank of Japan unanimously decided to maintain its monetary policy as it saw the economy “starting to recover moderately” with CPI “likely to turn positive". It retained its plan for increasing the monetary base by 60-70 trillion Yen annually with a 2014 target of 270 trillion. However, the BOJ also maintained scope for further easing to support stable price growth.

Assessments by the central bank included revised CPI and GDP growth projections for the next two years:

FY

Core CPI

Prior

GDP

Prior

2013

+0.6%

+0.7%

+2.8%

+2.9%

2014

+1.3%

+1.4%

+1.3%

+1.4%

2015

+1.9%

+1.9%

+1.5%

+1.6%

The BOJ will also be annoucing its interest rate decision in the coming hours.

USD/JPY (5-Minute Chart)

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BOJ_Monetary_Policy_Statement_body_Picture_1.png, Japanese Yen Higher After BOJ Maintains Monetary Base Target at ¥270T

Source: FXCM Marketscope

—Jimmy Yang, DailyFX Research Team

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