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BOJ Leave Policy Unchanged
The BOJ leaves the monetary policy in the world’s second largest economy, Japan unchanged deciding against taking further measures to relax the volatility in the bond market. Perhaps deciding that the recent volatility seen in the market does not pose a large enough threat to Japans economic recovery.
The decision boosted the Yen up against the USD with Japans EQ futures dropping and the ten-yr Government bond futures seeing further declines. The reaction to the BOJ’s decision shows the level of disappointment in the market. The USD reached 97.78 against the yen moving from 98.65 before the Central Banks decision.
The Nikkei also suffered from the BOJ’s decision with a decline of 2.6% to 13,250 in the overnight session.
US Credit Rating
Meanwhile in the world’s largest economy - the US, things are looking bright, or more specifically “stable” as S&P raised its US credit rating outlook to the US from negative. This means a raise from rating AAA to AA+. The US was downgraded from AA+ in August 2011. According to Standard & Poors the US has the “strong ability and willingness to support sustainable economic growth” as well as to absorb “ major or economic financial shocks”
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