In Brief: Bank of Japan maintains monetary easing, yen plunges

The picture shows an electronic screen showing the exchange rate of the Japanese yen against the US dollar. The photo was taken on the morning of September 22 in Higashi-Shimbasshi, Tokyo. (Kyodo)

[Kyodo News, Medi 22ain]At the monetary policy meeting on the 22nd, the Bank of Japan decided to conduct a large-scale monetary easing policy that pushed interest rates to very low levels. This prioritizes support for an economy that is yet to fully recover from the blow of COVID-19. Although the yen’s rapid depreciation against the dollar has led to higher food and energy prices and added to the burden on households, Japan has not corrected the yen’s depreciation by adjusting its monetary easing policy.

Ahead of the Bank of Japan meeting, the Federal Reserve (FRB) decided to raise interest rates by a significant 0.75%, further widening the Japan-US interest rate gap.

In the Tokyo foreign exchange market on the 22nd, the exchange rate of the Yen plunged, reaching the level since August 1998 when Japan was under the financial crisis. (finish)

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