Below are the key points from the Bank of Japan News that you should know. This forex news can serve as your reference before trading the Yen (JPY).
 
Comments from Bank of Japan Governor Ueda:
 
  1. Although negative interest rates and other policy tools from the Bank of Japan have boosted demand by lowering real interest rates, they have side effects on the JGB market.
  2. Initially, wage negotiation results tend to be revised, but we believe the final outcome will be strong.
  3. While consumption has slightly weakened, capital spending has strengthened. The BOJ has chosen to end negative interest rates in March rather than April.
  4. Some small companies may struggle to raise wages, but overall, small and medium-sized enterprises are experiencing increased profits.
  5. As massive stimulus comes to an end, the BOJ will gradually reduce its balance sheet, including purchases of JGBs.
  6. Currently, there are no specific plans regarding when to reduce JGB purchases or the size of the balance sheet.
  7. The BOJ will carefully examine how to reduce its ETF holdings.
  8. If there is a reduction in BOJ ETF holdings, the BOJ will set guidelines according to market developments at that time.
  9. In selling BOJ ETF holdings, the BOJ will minimize losses and disruptions in the market.
 
Statement from Japanese Chief Cabinet Secretary Hayashi:
 
  1. Hayashi is closely monitoring movements in foreign exchange rates and emphasizes their importance.
  2. Stability in currency value is crucial, as its movement reflects underlying economic conditions.
  3. He also considers the impact on the Japanese and global economies following the Federal Reserve's decisions.
 


Warning!
 
This is forex news regarding “Bank of Japan News: Governor Ueda Acknowledges Side Effects of Stimulus.” This analysis is based on fundamental and technical perspectives from trusted sources and does not constitute advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct your own independent research regarding other forex information as a reference for your trading.
 
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