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Bank Of Japan Reaction In Focus, Colombia Economic Activity

EMERGING MARKETS
  • LATAM Summary – January 18
  • The Bank of Japan board decided to keep monetary policy unchanged on Wednesday as the policymakers examine the impact of last month's decision to widen the range of its 10-year yield target aimed at restoring the functioning of financial markets.
    • The BOJ maintained its easing forward guidance for the policy rates, showing the policymakers are vigilant against the near-term downside risk to economy and saw the need to keep easing bias regarding the outlook for monetary policy. The Japanese Yen sold off around 300 pips in the direct aftermath of the decision but has since recovered around two thirds of the initial weakness.
  • Colombia Economic Activity is the only LatAm data point of note on Wednesday.

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