The Bank of Japan, the central bank of Japan, concluded a two-day policy-making meeting today, during which it resolved to extend the emergency lending program for the epidemic, but the accommodative monetary policy remains unchanged. Japan’s current 2019 coronavirus disease (COVID-19) new cases have soared to a record.
The Bank of Japan launched an emergency lending program in May, with the aim of injecting funds to small and medium-sized enterprises affected by the epidemic. The Bank of Japan today resolved to extend this lending program for six months, until September 2021.
In addition, the Bank of Japan also decided to stay put on the ultra-loose monetary policy; maintaining the main interest rate at minus 0.1% and the 10-year bond yield target of 0.0%.
The Bank said, “Japan’s economy has picked up, but only a moderate improvement is expected as it maintains vigilance over the new coronavirus outbreak.
In reference to the extension of the emergency lending program, the Bank of Japan said: “Financing, mainly corporate financing, may still be under pressure at the moment.
Bank of Japan President Haruhiko Kuroda said in a statement later that the Bank’s long-term policy stance remains unchanged, including the inflation target of 2%. This target is still out of reach.
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