The Japanese central bank kept interest rates unchanged

The Japanese central bank kept interest rates unchanged. Members of the Monetary Policy Committee voted 8 to one for this decision.
The central bank also said the economy is growing moderately. And while the inflation rate remains below the Bank's targets, there has been substantial progress in price growth. Central bankers are of the opinion that this trend in inflation will remain.
The central bank's inflation target is at a 2% unreachable level at this stage.
The Japanese economy is growing moderately, the financial institution said in a press release at the end of a two-day meeting at which interest rates were kept at a negative value of minus 0.1%.
Consumer price growth stood at 0.8% in October on an annual basis, following an increase of 0.7% in September. The world's third largest economy is expected to grow 2.5% in the three months to September on an annual basis.
The decision of the Japanese bank did not surprise the market. The dollar continued to trade without any significant change over the Japanese yen after the decision at levels of about 113.42 yen per dollar.

Fiscal stimulus in Japan disappointed

In Japan Prime Minister's Shinzo Abe long expected fiscal stimulus was finally disclosed. The cabinet approved on Tuesday a package of spending and loans totaling 28 trillion yen (about 275 billion dollars). The government announced their plans days after the central bank adopted a modest increase of their incentives.
IMF determine the increased costs as slightly improving the prospects. The Fund welcomes the decision of BoJ expansion of the incentives.
The government may issue 40 year government bonds worth 100 trillion yen to finance the budget.
Dollar/yen fell because of fiscal incentives and dealers continued to close long dollar positions. Short-term resistance is at 101.50 and the major support is 100.