Japan's central bank extends corporate funding program
Source: Xinhua | 2020-12-19
The Bank of Japan (BOJ) decided on Friday to extend a program instituted to support corporate funding by six months to the end of September next year, as surging coronavirus cases had created an uncertain economic outlook.
At the end of the central bank's two-day policy-setting meeting on Friday, meanwhile, the bank opted to maintain its ultra-loose monetary policy.
The BOJ also opted to keep unchanged its short-term interest rates at minus 0.1 while guiding long-term interest rates at around zero.
The bank will also continue to buy assets, including government bonds and exchange traded funds (ETFs).
"Japan's economy has picked up, although it has remained in a severe situation due to the impact of COVID-19 at home and abroad," the BOJ said, maintaining the same assessment made in October.
The economy will likely continue improving at a moderate pace looking ahead, the BOJ also said, while underscoring its pledge to, without hesitation, take additional easing steps if necessary.
The BOJ has taken steps to ease funding strains amid the pandemic, including providing funding to banks that extend zero-interest loans to companies struggling due to the pandemic and buying commercial paper and corporate bonds from lenders to ensure the banking system has enough liquidity.
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