The Bank of Japan on Wednesday maintained ultra-low rates of interest, together with its 0.5% cap for the 10-year bond yield, defying market expectations it will section out its huge stimulus programme within the wake of rising inflationary strain. Here are some feedback from specialists: CHRISTOPHER WONG, CURRENCY STRATEGIST, OCBC, SINGAPORE: “I rather they abandon, or don’t do anything at all.”

“With expectations running high, a no move would disappoint JPY bulls and weakness can return. But this is likely to be temporary as focus shifts to next MPC in March when Kuroda chairs his last.” TARECK HORCHANI, HEAD OF DEALING, PRIME BROKERAGE, MAYBANK SECURITIES, SINGAPORE:

“As expected by most economists, BOJ maintained its yield curve control and the previous move to widen the trading band was more to create a more efficient market, which didn’t work as the market expected a change of policy and pushed BOJ to buy even more bonds.” “The knee-jerk reaction has been a reversal in the USD/JPY short position ahead of the BOJ meeting and pushing USD/JPY 2% higher at 130.50.”

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