The yen fell last week, which was associated with the Fed’s decision to reduce the amount of asset purchases. Meanwhile, we add that the course of trade has also affected by the statement of the Bank of Japan. Note that the Bank of Japan today kept its monetary policy unchanged, as the economy continued its modest recovery, while consumer prices remain uptrend. At the end of the two day meeting, the Board of nine politicians members and head Haruhiko Kuroda said that they would keep unchanged the goal to expand the monetary base at the level of 60-70 trillion yen in annual pace.
The Board stated that the economy is recovering gradually and moderately and the change in the consumer price index is currently at about 1 percent (annualized). Inflation expectations are rising, according to the evaluation.
The Bank of Japan expects that the economy will continue to moderate recovery in the near future, while the annual rate of change in the CPI is forecasted to grow also. The Bank of Japan also renewed its pledge to continue easing up until it will be necessary to maintain inflation close to its goal of price stability at 2 percent.
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