Japanese markets had reacted positive during trading hours with gains of over one percent on the Nikkei 225. South Korea had also seen similar gains on its Kospi index.
The Japanese Yen had also experienced a surge trading higher against Asian currencies.
After much anticipation the Bank of Japan had announced that it was keeping its monetary policy steady. Its short-term interest rates were to be kept the same at -0.1 percent. They also mentioned that it would continue to purchase Japanese government bonds in effort to keep its ten-year yields at around zero percent.
In regards to the Japanese economy the outlook remained steady, in their announcement they stated that they would expect to see a continued moderate expansion despite on going slowdowns from overseas economies.
“With low inflation we have seen that the Bank of Japan have been forced to keep its stimulus program regardless of some rising costs,” highlighted key economist and director of Corporate Trading, Colin McDermott at Yamanashi Kyoto Management.
Analysts from Yamanashi Kyoto Management also mentioned that the markets would react positive to the statement, looking towards the U.S. Federal Reserve as they will also be due to meet next week to make a statement on its policies.
For now markets will be steady whilst experiencing inflation throughout Asia.
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