Bank of Japan Decides to Maintain Large-Scale Monetary Easing... Interest Rates Held Steady

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Bank of Japan (BOJ) decided on the 16th to maintain its large-scale monetary easing policy to revive the economy hit by the novel coronavirus infection (COVID-19).

According to NHK and other broadcasts, the BOJ decided at the two-day monetary policy meeting held until that day to keep the short-term policy interest rate at -0.1% and the long-term interest rate at around 0%. The BOJ changed its economic assessment from "increasing difficulties" in April to "very severe conditions" this time. In particular, it explained that exports and production have significantly decreased, and housing investment is also declining moderately.

Accordingly, the BOJ decided to maintain the monetary easing policy introduced in response to COVID-19. First, it plans to expand financial support for companies affected by COVID-19. This involves supplying funds to financial institutions at virtually zero interest rates and supporting loans to companies. It will also continue purchasing exchange-traded funds (ETFs), as well as continuing purchases of government bonds and supplying dollar funds.

BOJ Governor Haruhiko Kuroda is scheduled to hold a press conference in the afternoon to explain the meeting details.

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