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BOJ is steady in its response to the crisis

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Japan keeps on making efforts to help its economy.

For Asian countries, the pandemic is still felt hard, mostly in way their respective governments are trying to keep their economies afloat after they fell into recession. One of the world's biggest economies – Japan, officially entered recession and it’s struggling to inject more money.

Tuesday, BOJ governor Haruhiko Kuroda said that the Bank of Japan is getting ready for a possible future second wave of infections.

The bank hasn't changed the programs made to ease the corporate funding strains. The amount designed for such programs increased to 110 trillion Yen, from the 75 trillion Yen speculated in May.  In Kuroda's words, "Given the uncertainty on how the pandemic could affect our economy and markets, we may need to ponder new measures. We'll respond flexibly.” But the country lost the battle in achieving its inflation goal of 2%. Analysts believe that the GDP contracted by 20% during this quarter. 

As a matter of precaution, the BOJ's response to the crisis could be extended over the March 2021 deadline. For the short-term interest rates, the yield curve is kept at -0.1%, while the long-term stays at 0%. 

As of Tuesday, the number of infections is at 17,601, with 929 deaths.

Japan225 roughly increased by 5% after the announcement.

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Sources: forexlive.com, reuters.com, economictimes.indiantimes.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.