BANK OF JAPAN SHOCKS MARKETS ACROSS THE GLOBE WITH MAJOR CONSEQUENCES
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Bank Of Japan Shocks The Globe
Please click here for a chart of Japanese yen futures (JPY_F).
Note the following:
- Historically, Bank of Japan (BoJ) is known for surprises. Overnight, BoJ shocked markets across the globe.
- The chart shows the big move up in Japanese yen on the jolt from BoJ.
- BoJ is abandoning its present yield curve control after burning through billions of dollars. BoJ is changing the cap for the 10-year government bond interest rate to 0.5% from 0.25%. The rate jumped to 0.4%
- Large investors have been borrowing in yen at the cheap rate and investing elsewhere such as in the U.S.
December 20, 2022