BOJ to Review COVID-19 Financing Aid Package

Politics

Tokyo, Dec. 12 (Jiji Press)--The Bank of Japan is expected to review its COVID-19 business financing aid package at its next monetary policy meeting from Thursday.

Meanwhile, the bank's nine-member Policy Board is seen keeping intact the policy of guiding short- to long-term rates to very low levels.

The package includes incentives for commercial institutions to extend interest-free unsecured loans to small companies and expanded purchases of corporate bonds and commercial paper in market operations.

"Financial situations are calming down, with large companies steadily repaying debts," a BOJ executive said.

The central bank is therefore expected to discuss a possible reduction in the bond and CP purchases at the two-day policy meeting.

[Copyright The Jiji Press, Ltd.]

Jiji Press