The yen traded slightly lower against the dollar early on Thursday, after the BoJ kept interest rates on hold and pushed the deadline for it to reach its inflation target for another six months. As widely anticipated the central bank kept key policy rates at -0.1% and a 10-year government bond yield target of around 0%.
The big theme at the moment is rising bond yields as key central banks attempt to move away from the era of extraordinarily loose monetary policy and zero interest rates. This is due mainly to rising levels of inflation, higher rates of employment and steady growth across many developed economies.
Thursday may not be dominated by appearances from prominent central bankers like the previous two were but we’re continuing to see markets focus on what’s been said, with the euro and sterling both pushing higher again.
Another day in Europe is coming to an end, and those who like volatility were not left disappointed with the euro and pound making sharp moves as speculators responded to fresh rumors and comments from central bank officials.