Bank of Japan extends monetary easing as virus concerns worsen

The Bank of Japan has been providing stimulus supports for two months already, with additional support filed on Monday to alleviate corporate funding from financial drag. It was also set to aid government spending aimed at nursing the economic downturn brought by the pandemic.

“The BOJ will purchase necessary amounts of government bonds without setting up upper limit so that the 10-year bond yield will remain at around 0%,” the central bank said.

The recent stimulus placed the bank in line with other central banks that have provided large volumes of funds amid the novel coronavirus pandemic. It pledged to purchase corporate bonds and commercial papers up to 20 trillion yen, far larger than its initial promise of 7 trillion.

The meeting last Monday had it that the BOJ will retain its interest rate, parallel to what had been widely speculated. Moreover, BOJ Governor Haruhiko Kuroda will hold a conference to discuss further the policy.