Japanese Overnight Call Rate

The BOJ, as expected, kept the overnight call rate at 0.10%; the result of a unanimous decision by the BOJ. In addition, the BOJ released the following statements:

• BOJ maintains its economic assessment.
• It will maintain very easy monetary conditions.
• It is important to pull Japan out of deflation.
• The fall of annual core consumer prices are narrowing.
• Policy board decision on expanding fixed rate funding operation was by a vote of 5-2; members Noda, and Suda voted against expanding the fixed rate funding operation.
• Japan's economy is picking up but domestic demand lacks momentum.

Following the release of these announcements, the JPY gained nearly 40 pips against the USD, EUR, and GBP.