BOJ Boosts Coronavirus Relief Steps as It Cuts Economic View

Politics

Tokyo, June 16 (Jiji Press)--The Bank of Japan on Tuesday boosted the total size of its corporate financing support steps related to the coronavirus crisis to some 110 trillion yen, as the central bank downgraded its economic assessment.

The total was lifted from the originally planned sum of around 75 trillion yen, following Friday's enactment of the government's fiscal 2020 second supplementary budget featuring additional measures against the virus outbreak.

The new sum is made up of 20 trillion yen for purchasing commercial paper and corporate bonds, and 90 trillion yen for fund supply to financial institutions that mainly support small businesses and sole proprietors.

"We'll consider a further expansion (of the relief measures) if necessary," BOJ Governor Haruhiko Kuroda told a press conference on Tuesday. "We're determined to provide funding support and work to maintain stability in financial markets in the long term."

At its two-day policy-setting meeting that ended earlier in the day, the BOJ decided to keep its current monetary-easing policy unchanged. The BOJ Policy Board voted eight to one to keep its short-term policy interest rate at minus 0.1 pct and guide 10-year government bond yields around zero pct.

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Jiji Press