BOJ Decides on Further Easing to Tackle Coronavirus Fallout

Economy Politics

Tokyo, April 27 (Jiji Press)--The Bank of Japan at a policy-setting meeting Monday decided to buy Japanese government bonds unlimitedly for the time being, in an effort to support the Japanese economy which has been seriously battered by the coronavirus outbreak.

The central bank decided on additional easing for two consecutive monetary policy meetings of its Policy Board, a development unseen since 2016.

The BOJ will step up JGB purchases by abolishing the conventional annual target of around 80 trillion yen, to stem a surge in long-term JGB yields that could be triggered by the large amount of JGB issuance planned by the government for implementing emergency measures to cope with the economic fallout from the viral epidemic.

The central bank will conduct "active purchases" of JGBs "without setting an upper limit," the BOJ said in a statement released after Monday's meeting.

The Policy Board also decided to expand its purchases of corporate bonds and commercial paper, with the upper limit on the amount outstanding now set at about 20 trillion yen in total, to help firms that are struggling financially in the face of the virus crisis. The upper limit is about triple the amount of 7.4 trillion yen set at the previous monetary policy meeting in March.

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