No change in interest rates: BOJ

BOJ kept the interest rate unchanged at 0.1% today for the continuous eleventh time in order to meet the expectation of the market. The decision of BOJ is of utmost importance because it affects the Forex trading and the market.

They agreed that, as the economy is no more in the worst condition so the bank assessment proceedings will upgraded.

BOJ gave the credit of this progressive economy to the stimulus plan, quantitative easing and the government support to manage the economic issues properly.

They also added that financial position of the nation is improving but the domestic spending and the consumption rate is yet fragile.

Few signs of improvement are observed in consumption rate due to increase in imports and the industrial production showed upward movement due to lower inventories that supported industries to continue production.

The consistency in the overall economic situation laid its effect on the Japanese financial strength particularly seeing that overseas sell demand initiate to alleviate.

The figures of durable goods consumption are showing positive response indicating the rising consumer confidence in the economy of the nation. The improved consumption tells about the improved purchasing power of the citizens.

This will be helpful to stimulate the monetary policy to ease put the credit procedures and encourage lending of finance. The initial signals of stability are coming into view even though the drop in income is continuing and job losses are still on.

The analysis of market indicates that the volatility of food and energy consumption is still low as compared to the last year’s price index. The inflation rate has direct proportion with the low demand and submissive financial growth.

The BOJ is expecting medium to long-term price stability and fall in prices will freeze out and will stabilize soon due to rising commodity prices.

It is very clear to all that the economic recovery phase will take time and continue to be sluggish in the first half of the coming year.

The noticeable improvement in the export level will sustain domestic spending rate and that will slowly improve the growth rate of the economy. The bank assured to continue the economic assistance and provided the required measures to stabilize the market position at international Forex trading platform.

The statements of the BOJ reflect their concern about the economy and their intention regarding extending the stimulus plans and provision of government support to bring financial stability. Forex trading is the platform where the value of currency fluctuates easily with the changes in the government plans and announcement regarding any national matter.