Goldman Sachs on the Bank of Japan decision and what it means for the yen
Ahead of the July meeting, markets were expecting the BoJ to take
aggressive action to reverse the rebound in the Yen since January. But
in the event, the BoJ only raised the size of ETF purchases from JPY 3.3
tn to JPY 6.0 tn per annum, something seen as incremental by markets
when compared to JGB purchases of JPY 80 tn annually. Perhaps in an
effort to head off adverse market fallout, Governor Kuroda announced a
"comprehensive review" for today’s meeting, with the aim of reviewing
the effects of QQE since its introduction. In the event, the
"comprehensive review" brought fundamental changes.