Bank of Japan to ease monetary policy in March, survey says

Japan is set to lessen monetary policy this month, following sudden measures implemented by the Federal Reserve, as the virus outbreak threatens an economic recession.

In a survey, 33 out of 38 economists anticipated an expansion on monetary stimulus by the Bank of Japan.

Policymakers globally have been pressured to implement fiscal and monetary measures to prevent further risks on supply chains, consumption, and travel.

Markets have speculated that the BOJ will ease monetary policy at its rate review on March 18-19, if the economic fallout results in steep stock price fall that will heavily impact on the country’s export-reliant economy.

Of the 33 economists who expected the BOH to ease on monetary policy, 23 anticipated the BOJ to top up stimulus.

Hiroshi Ugai, chief economist at JPMorgan Securities Japan said that it is expected of the BOJ to top up buying of risky assets and release a new fund-supplying operation that will help companies on financial damage.