Japan economy minister Shigeyuki Goto acknowledges the Bank of Japan’s decision on Tuesday was not meant to be a tweak or exit from monetary easing.
Bank of Japan shocked markets on Tuesday with a surprising tweak to its bond yield control. The BoJ has adjusted the terms around long-term interest rates, allowing them to rise more in a move aimed at easing some of the costs of prolonged monetary stimulus. As a result, the yen rallied around 5% higher vs. the USD. USD/JPY fell from a pre-BoJ high of 137.40 to a low of 130.56.