The Bank of Japan will hold a monetary policy decision meeting on the 13th and 14th. The decision will be announced around noon on the 14th, followed by a press conference by Governor Kuroda in the afternoon.
At the last meeting in April, although the policy interest rate was kept unchanged as largely expected by the market, it had dropped to historically low levels.Expectations for actions to curb the depreciation of the yen were disappointed, leading to an acceleration of the yen's depreciation..The situation led to the Ministry of Finance intervening in the foreign exchange market with a total of approximately 9.7 trillion yen.Amid growing concerns of a 'bad weak yen', the traditional correlation of 'weaker yen = higher stocks' has weakened, leading only to a rise in interest rates (while bond prices fall) due to the Bank of Japan's opaque monetary policy.Concerns about the 'triple safety' of stock prices, the yen, and interest rates.Also, it is emerging.
At the June meeting, it is expected that measures will be taken to correct the depreciation of the yen by reducing long-term government bond purchases, without repeating the past mistakes.There is a growing belief that some steps will be taken to prepare for an additional rate hike since March.Whether or not some preparations for an additional rate hike will be made is being watched.It is being watched whether some preparations for an additional rate hike will be made.It is being watched.
Can the April meeting to reverse the "failure" caused by foreign exchange intervention?
As a response to the progress of yen depreciation to a historically low level in 34 years at the April meeting, measures such as reducing the amount of long-term government bond purchases and suggesting additional interest rate hikes are taken to address the rise in interest rates...