Japan's central bank steps up stimulus

日銀が追加金融緩和 国債買い入れ上限撤廃、コロナ対策

NHK -- Apr 27
The Bank of Japan has unveiled a package of additional measures to stimulate the economy and help companies hit hard by the coronavirus.

Policymakers held a one-day session on Monday, instead of their regular two-day meeting, to deal with the urgent situation.

The BOJ said its purchases of government bonds are now unlimited. The expansionary move is in line with the government's emergency economic measures that include issuing more government bonds.

Another part of the BOJ's asset-purchase program aims to help with the funding needs of companies struggling amid the pandemic. The central bank will boost its buying of corporate bonds and commercial paper up to 20 trillion yen, or about 185 billion dollars, by the end of September.

The measures come as a call by the government for people to limit their outings and decisions by companies to halt factory production affect small businesses and large corporations alike.

Furthermore, the BOJ has sharply revised downward its outlook on Japan's GDP growth for this fiscal year. Its projection sees a contraction of 3 to 5 percent. The previous outlook from January expected an expansion of 0.9 percent.

The US Federal Reserve and the European Central Bank are also scheduled to hold policy meetings this week.

One focus will be on what form their additional easing measures will take. The coronavirus is causing severe economic woes in the US and Europe, where infections are more widespread than in Japan.

Apr 27 (Kyodo) - 日銀は27日に金融政策決定会合を開き、追加の金融緩和策を決めた。国債買い入れの上限を撤廃し、社債やコマーシャルペーパー(CP)の購入枠を拡大する。金融市場に大量の資金を供給できる態勢を整えて急激な金利上昇を防ぎ、社債などの購入を通じて新型コロナウイルス感染拡大で打撃を受けた企業の資金繰りを支援する。

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