Chaos Ensues After Nikkei Reports Bank Of Japan Discussed Negative Interest Rate Policy

Just minutes before The BoJ is due to release its statement, USDJPY and Nikkei 225 went haywire around 2220ET as Nikkei news dropped a headline about NIRP discussions taking place at The BoJ. This is not the BoJ statement but has sparked chaos in Japanese (and all carry trade linked markets). We can only assume this was some well-placed strawman for The BoJ statement enabling Kuroda to get a glimpse of what is possible.

Total chaos broke out ahead of the BoJ Statement…as Nikkei News dropped this headline…

  • *BOJ DISCUSSES NEGATIVE INTEREST RATE POLICY, NIKKEI SAYS

BOJ discusses introduction of negative interest rates today at policy meeting, Nikkei reports.

  • Negative rates discussed due to growing concern of downward pressure on Japan economy and CPI because of cheap crude oil, China slowdown: Nikkei

Nikkei 225 is up 500 points on the news, USDJPY +50 pips

 

Some context for that move…

 

Having given up all its gains since the last QQE update…

 

 

G622


via Zero Hedge http://ift.tt/1OTvcKw Tyler Durden

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