Bank of Japan Maintains Large-Scale Monetary Easing Policy

[Asia Economy Reporter Seulgina Jo] The Bank of Japan (BOJ), Japan's central bank, has decided to maintain its large-scale monetary easing policy.

According to the Nihon Keizai Shimbun, on the 22nd, at the monetary policy meeting chaired by Governor Haruhiko Kuroda that began the day before, the BOJ decided to continue its monetary easing policy aimed at guiding short-term policy rates to minus (-) 0.1% and long-term rates to around 0%.

Additionally, to assist companies struggling due to COVID-19, the BOJ will purchase corporate bonds and commercial paper up to a total limit of 20 trillion yen (approximately 216 trillion won) until March next year. The stock market stimulus policy through ETF (Exchange-Traded Fund) purchases, capped at 12 trillion yen annually, will also be maintained.

Along with this, the BOJ has finalized the details of a fund supply scheme for decarbonization projects within the year. This structure provides financial institutions dealing with corporate loans leading to decarbonization and environmental bond purchases with virtually long-term funds at a 0% interest rate. It is scheduled to be introduced within the year.

On this day, the BOJ maintained its previous assessment that although the domestic economy continues to face difficulties due to the impact of COVID-19, it is showing signs of recovery. It also evaluated that exports and production are increasing despite being affected by supply constraints. Regarding the liquidity crisis of China's Evergrande Group, the BOJ plans to carefully monitor its impact.

Governor Kuroda will hold a press conference this afternoon to explain the decision on the large-scale monetary easing policy and related matters.

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