At the monetary policy meeting held until the 17th, the Bank of Japan reaffirmed its stance of maintaining large-scale monetary easing and curbing the rise in long-term interest rates.
While there are many views among market participants that the yen may depreciate for the time being, there is also a view that the depreciation of the yen has gone too far, and there is growing interest in future trends in financial markets.
At the monetary policy meeting held until the 17th, the Bank of Japan decided to maintain the current large-scale monetary easing measures to purchase government bonds to keep short-term interest rates negative and long-term interest rates to around 0%.
Monetary easing will continue persistently to support the economy recovering from the effects of the new corona.
At the same time, the Bank of Japan has strengthened a measure called a "limit operation" to buy unlimited government bonds at a specified yield, and has reaffirmed its stance of curbing the rise in long-term interest rates.
While the central banks of Europe and the United States are moving to tighten monetary policy one after another, the Bank of Japan's response has attracted attention, but Governor Kuroda said at a press conference on the 17th, "If we tighten monetary policy now, the downward pressure on the economy will increase and the economy will worsen. "It will be." He emphasized that he is not thinking about amending monetary easing at this time.
Regarding this, there are many views among market participants that the yen may depreciate for the time being because the composition of the interest rate differential between Japan and Europe and the United States will not change due to the difference in the direction of monetary policy. There is also a view that "cheap is too much".
Regarding the rapid depreciation of the yen, the Bank of Japan also needs to pay close attention to its impact on the economy and prices, and there is growing interest in future trends in financial markets.