BOJ announce adopts negative rates policy

January 28, 2016, 10:38:34 PM EDT By Eamonn Sheridan, ForexLive

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The Bank of Japan monetary policy meeting has concluded

THIS IS BIG NEWS FROM THE Bank of Japan

BOJ eases monetary policy further
Adopts negative interest rate policy, to charge interest for excess reserves financial institutions park with BOJ
Adopts negative 0.1 pct interest for excess reserves financial institutions park with BOJ
BOJ decision on negative rates was made by 5-4 vote
Maintains pledge to increase monetary base, its main policy target, at annual pace of 80 trln yen
Decision on monetary base was made by 8-1 vote

BOJ's median core cpi forecast for fiscal 2016/17 at +0.8 pct vs +1.4 pct projected in oct
BOJ's median core cpi forecast for fiscal 2017/18 at +1.8 pct vs +1.8 pct projected in oct
BOJ's median core cpi forecast for fiscal 2015/16 at +0.1 pct vs +0.1 pct projected in oct
BOJ expects to meet 2 pct inflation goal around first half of fiscal 2017
BOJ's price estimates based on view crude oil expected to rise from recent $35 per bbl to over $40 towards end of projection period

quick headlines via Reuters

More (I may have repeated myself a little with some these):

BOJ to charge interest for excess reserves financial institutions park with BOJ
Will cut interest rate further into negative territory if judged necessary
Negative interest rate will be adopted in tandem with QQE
No change in BOJ's base money target of 80 trln yen
Will introduce 3-tier system on rates
Will aim to lower short end of yield curve, exert further downward pressure on rates via combination of negative rate, large-scale JGB buying
BOJ pushes back timing for achieving its 2 pct inflation target in quarterly report
Japan CPI likely to reach 2 pct in first half of fiscal 2017/18
Will adopt zero rate for its loan support programme, fund-supplying operations
Makes no change in pace of JGB, ETF, J-REIT purchases
Will examine risks to econ, prices, take additional easing steps if needed using quantity, quality, and interest rate
Acted to preempt manifestation of risk of market volatility hurting business confidence

Added:

The USD/JPY moves:

And, still to come later, Bank of Japan Governor Kuroda's press conference due at 0630GMT

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This article appears in: Investing Forex

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