The Japanese bank left interest rates unchanged:
The bank kept the interest rates unchanged,at minus 0.1%, but said it would aim to keep the yields on 10-year government bonds at around current levels of zero percent.
The Bank of Japan has made changes to its stimulus programme, in its latest attempt to spur economic growth.
The bank, the Bank of Japan, said on Wednesday that it intended to “overshoot” its previous target of 2 percent year-over-year inflation growth. Its preferred measure of inflation stood most recently at minus 0.5 percent.
The growth in Japan disappointing again
The growth figures released today in Japan, the world’s third largest economy showed that during the second quarter the growth was of 0.2%, compared with forecasts for growth of 0.7%.
One of the main causes of the disappointing growth in Japan was a lower business expenses in the second quarter (0.4%)compared to the first quarter of the year.
The trading day on the Asian stock markets conducts with gains, led by Tokyo Stock Exchange after the publication of the minutes of meetings of the Monetary Committee by the bank of Japan, which decided to increase the incentives for the central market.
Investors disappointed with incentives in Japan: Tokyo falls,the Japanese yen is rising
The Asian stock markets trading is conducted with declines in light of investors’ disappointment with the Bank of Japan’s announcement regarding his incentives to the markets.
The Bank of Japan announced that it is increasing slightly the purchase of ETFs,and the extent of acquisition of other assets, which include mainly bonds, will remain at 80 trillion yen (775 billion dollars) a month.
The trading on Wall Street last night ended in a mixed trend in tense anticipation to the Fed’s interest rate decision today and the Japanese central bank over the weekend.
The Fed is expected to leave the interest the same level, 0.50%,but investors will try to see whether the tone of the US central bank has changed and will try to extract clues about when the next interest rate rise will be.
Traders around the world are waiting anxiously for two major events to be held later in the week:
The interest rate and monetary policy of the US Federal Reserve and the interest rate announcement of the Bank of Japan.
According to market forecasts, the Japanese bank will put into effect some monetary incentives in order to weaken the Japanese yen, which strengthened after the withdrawal of Britain from the European Union, and to encourage their growth.