Yen kicked down after surprise Bank of Japan move to negative rates

Posted On 29 Jan 2016

The Bank of Japan concluded their policy meeting today and made a surprise announcement that they cut interest rates and took them to negative.

The change takes effect on Feb. 16, accoring to the central bank as it also maintained a record asset-purchase plan.

Many economists were taken by surprise as very few predicted the BOJ would expand already-record stimulus.

The yen fell 1.3 percent versus the dollar, its biggest loss in almost a year. Against the euro, it dropped 1.1 percent. Asian shares rose to a two-week high. Japanese bonds rallied after the central bank decision, pushing yields to record lows.

The BOJ’s decision “is positive for equities, as the Bank aim sot stimulate the economy and weaken the yen to boost exports and get savers to spend.

The MSCI Asia Pacific Index rose 0.7 percent as of 2:08 p.m. in Tokyo. Japan’s Topix index rose 1.6 percent. It jumped as much as 3.1 percent after the BOJ decision before tumbling to a loss and then rebounding.

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