BOJ is steady in its response to the crisis

BOJ is steady in its response to the crisis

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


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