Kuroda, Governor of the Bank of Japan, "Additional Monetary Easing Measures if Necessary"

[Asia Economy Reporter Changhwan Lee] Haruhiko Kuroda, Governor of the Bank of Japan, stated on the 16th that "we are closely monitoring the impact of the novel coronavirus infection (COVID-19) and will not hesitate to take additional monetary easing measures if necessary."

Local Japanese media reported that Governor Kuroda made these remarks at a press conference held after the Monetary Policy Meeting concluded that afternoon.

At the Monetary Policy Meeting, which was held two days earlier than originally scheduled, the Bank of Japan decided to expand the target amount for purchasing exchange-traded funds (ETFs) from the existing 6 trillion yen (approximately 69 trillion won) to 12 trillion yen, and to increase funding provision to small and medium-sized enterprises through expanded funding supply to financial institutions, in order to mitigate the economic damage caused by the spread of COVID-19.

The Bank of Japan held the Monetary Policy Meeting from 12 PM that day and unanimously decided on additional monetary easing measures focused on funding supply and market stability. This additional monetary easing was the first in three years and six months since September 2016.

At the press conference held after the meeting, Governor Kuroda assessed that the recent global financial market instability caused by the spread of COVID-19 is different in nature from the 2008 "Lehman Shock." However, he noted that the infection is spreading globally with a time lag, and there is significant uncertainty regarding the magnitude and duration of its impact on domestic and international economies.

Regarding the Bank of Japan's decision to withhold lowering the benchmark interest rate, which is currently at minus 0.1%, he said, "What is needed now is to focus all efforts on corporate financing."

This content was produced with the assistance of AI translation services.