25 Apr 2016
BoJ meeting has the potential to eclipse that of the Fed - Rabobank
Jane Foley, Senior FX Strategist at Rabobank, suggests that the BoJ meeting on April 28 has the potential to eclipse that of the Fed.
Key Quotes
“USD/JPY is trading on a softer note overnight but the currency pair had been lifted markedly on Friday on a report that the BoJ may consider applying negative rates to some loans for financial institutions.
The BoJ’s decision on January 29 to push rates into negative territory sparked controversy not least because of fears that it would impact bank profitability. A semi-annual report on Japan’s banking system, released on Friday, reported that negative rates had caused disruption in fund flow and will hurt profitability of financial institutions.”
Key Quotes
“USD/JPY is trading on a softer note overnight but the currency pair had been lifted markedly on Friday on a report that the BoJ may consider applying negative rates to some loans for financial institutions.
The BoJ’s decision on January 29 to push rates into negative territory sparked controversy not least because of fears that it would impact bank profitability. A semi-annual report on Japan’s banking system, released on Friday, reported that negative rates had caused disruption in fund flow and will hurt profitability of financial institutions.”