JadeFOREX

At the Bank of Japan’s monetary policy meeting today, the central bank decided to increase the allowable interest rate on 10 year government bonds from plus or minus 0.25% to plus or minus 0.5%, a change in policy for monetary easing.

Interest rates have been positive or negative, but the range of real rate increases has been widened to 0.5% in the market, which is seen as a decision to tighten monetary policy.

The yen has sharply strengthened against other currencies, with the dollar briefly falling to 133.091 and the euro to 144.213.
On the stock market, too, the Nikkei average has fallen more than 800 yen at one point.