The Yen soars as the Bank of Japan disappoints on easing

Photo by Adam Pretty/Getty Images

The Bank of Japan’s (BOJ) July monetary policy decision has just been released, and it’s a fizzer.

The BOJ eased monetary policy at the meeting, announcing that it will increase exchange traded fund (ETF) purchases to an annual pace of 6 trillion yen, up from 3.3 trillion yen previously.

However, the bank made no change to the annual increase in the nation’s monetary base — still set at around 80 trillion yen — with no change made to the amount of Japanese government bonds (JGBs), real estate investment trusts or corporate bonds purchased.

It also refrained from reducing interest rates, leaving them steady at -0.1%.

Markets were expecting much more, and as a result the Nikkei and USD/JPY are tanking.

Here’s the 5-minute tick chart of USD/JPY on Friday. It’s not hard to see when the BOJ policy decision was delivered.

The Nikkei, meanwhile, took a short dive but it now back to flat for the session.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at