Breaking: BoJ stands pat on yield control policy, USD/JPY rockets

At its first monetary policy meeting of this year, the Bank of Japan (BoJ) board members decided to make no changes to their monetary policy settings in December, maintaining rates at -10bps and 10yr JGB yield target unchanged at 0.00%.

Summary of the statement

No change to yield band.

Decided to extend by one year fund operation to support financial institutions’ lending.

No change to forward guidance on interest rates.

Decided to enhance fund supply operation against pooled collateral.

Expands range of eligible parties for climate change funding scheme.

BoJ maintains guidance that it will continue large-scale JGB buying, make nimble responses for each maturity.