BoJ: key interest rate unchanged; expanded the size of the coronavirus lending program
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BoJ: key interest rate unchanged; expanded the size of the coronavirus lending program
Japan's central bank kept its key interest rate unchanged and expanded the size of the coronavirus lending program on Tuesday. The Policy Board of the Bank of Japan voted 8-1 to retain the interest rate at -0.1 percent on current accounts that financial institutions maintain at the central bank.
By the way, USD/JPY is on ranging within 108.54/106.54 support/resistance level to be inside Ichimoku cloud waiting for the direction of the strong primary bearish/bullish trend to be started.
The bank will continue to purchase a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.
The central bank raised the size of the coronavirus lending program to JPY 110 trillion from JPY 75 trillion. The program includes purchases of commercial paper and corporate bonds in addition to loans to banks.
"As the impact of COVID-19 subsides, the economy is likely to improve, supported by accommodative financial conditions and the government's economic measures, as well as through the expected materialization of pent-up demand and a projected recovery in production from the decline brought about by COVID-19," BoJ said.
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