The yen continues to fall as the Bank of Japan adheres to the policy of economic growth

Written on 18 December 2024.

Bank of Japan Governor Kazuo Ueda has vowed to maintain ultra-low interest rates while downplaying inflationary risks.

The USDJPY rose at the beginning of Friday after another meeting of the Bank of Japan, which did not bring any surprises. Japan's central bank, headed by Governor Kazuo Ueda, maintained an ultra-loose monetary policy despite rising consumer prices and looming recession fears.
In light of this, the dollar rose to above 141 yen, hitting a session high of 141.40 yen. Since the beginning of 2023, the Japanese currency has lost more than 11% of its value against the stronger US dollar. However, the Bank of Japan intends to continue stimulating the economy.
Governor Ueda and the board of central bankers are unanimous in their decision to maintain a negative short-term interest rate target of -0.1% and a zero cap on 10-year bond yields. Other yen pairs also rose. GBPJPY reaches more than 182 yen - such a rate was last observed in 2015.