Bank of Japan provides assistance to coronavirus-stricken companies

Japan's central bank on Tuesday offered assistance to businesses struggling to cope with the coronavirus pandemic as it seeks to ease the recession in the world's third-largest economy.

The Bank of Japan (BoJ) has expanded its zero-interest lending program from 55 trillion yen to 90 trillion yen (37 837 billion) for companies. Its total war chest for companies is 110 trillion yen when considering the purchase of corporate bonds.

After the two-day policy meeting, the bank said, "Japan's economy is currently miserable due to the impact of COVID-19 at home and abroad, but economic activity is expected to resume gradually."

It has pledged to “closely monitor” the effects of the virus on the Japanese economy, becoming the first recession since 2015.

BoJe made no changes to its over-lax monetary policy framework, including unlimited purchases of government bonds and a negative interest rate.

Even before the global crisis of the epidemic, Japan was struggling with natural disasters and consumption tax increases.

Consumer spending has slowed to a crawl despite low infection numbers and infections dying in Japan. In recent cases in Tokyo, the possibility of a second wave has increased.

Along with the central bank, the Japanese government scrambled to approve the emergency budget - including the $ 300 billion worth passed in parliament last week - to keep the economy moving.

Post a Comment