The focal point last week centered on central bank meetings. The FOMC meeting proved largely uneventful, with the Federal Reserve keeping rates unchanged as widely anticipated. In contrast, the Bank of Japan (BOJ) began shifting towards an exit from its monetary easing strategy. This significant shift has prompted us to concentrate on the BOJ’s decision in this week’s recap.

On Top of Our Mind This Week: BOJ highlights its stance on interest rates

JPY/USD Chart (Source: Google Finance)

Bank of Japan Eases Grip on Long-Term Yields Amid Market Distortions The Bank of Japan (BOJ) recently took a symbolic step towards the eventual end of a program designed to maintain low borrowing costs while addressing concerns that it has distorted the bond market. During a two-day meeting, the BOJ’s Policy Board redefined the 1.0 percent ceiling, which the central bank had set in July, as “the upper bound” for 10-year...