US Dollar Jumps after Bank of Japan’s Policy Decision, But BOJ Governor Makes New Comments Shortly After

Bank of Japan Governor Kazuo Ueda said that accommodative policies, including the yield curve control (YCC) policy, will be maintained. Kazuo Ueda expects that Japan's CPI may fall below 2% in the second half of fiscal 2023.

After the news was released, the US dollar jumped against the yen, up 1.36% as of CST 15:13.

Subsequently, Kazuo Ueda said that “the policy review period of 1 to 1.5 years does not mean that the policy will not change during this period. During the review period, we will make adjustments to monetary policy as necessary”.

The BOJ will maintain the scale and frequency of monthly bond purchases in May.