Bank of Japan Says No More Simulus for Now, Markets and Yen React Badly

 

The Bank of Japan (BoJ) has surprised the financial world by doing nothing.

After its latest policy meeting there was no word on new monetary stimulus from Governor Haruhiko Kuroda, who did though leave the door open for more if the fragile economic recovery needs help.

He defended the decision to keep policy unchanged by saying a steady improvement in the country’s economy means the bank can pause and study the effect of its past policy steps, including a negative-rate strategy introduced in January.

The hope is their previous cuts in borrowing costs will lead banks to lend more. 

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Source: Euronews