Unscheduled BoJ Meeting

The Bank of Japan has called for an unscheduled meeting today, in order to discuss and analyze the latest developments concerning the financial markets.

Most analysts and market commentators expect the bank to announce ways to improve the Yen money-market rates. This comes a day after the bank announced it is considering joining the European central banks and offering unlimited dollar funds. The probability of a rate cut coming from the BoJ is minimal, since the bank already has the lowest interest rate within the industrialized nations, and bank officials have said a few times in the past that the interest rate should gradually increase.

The bank's decision should have no direct implications for the currency market. However, a decision that will support the local banks and the financial system is likely to give another strong push for the global markets. This will be seen in the charts, as risk-tolerance rises and the currencies with the lowest yields are sold.

The bank said in a statement that the meetings purpose is: “To examine recent developments in global financial markets and to discuss monetary control matters, including ways to further enhance the effectiveness of money market operations (except for those pertaining to the Bank's reserve system), with a view to maintaining stability in financial markets.” 

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