The monetary policy statement from the Bank of Japan for December 2020 is out now.
- maintains short-term interest rate target at -0.1%
- maintains 10-year JGB yield target around 0%
- decides to extend March 2021 deadline for package of measures to ease corporate funding strains by 6 months
- no need to change yield curve control framework
- The Bank will conduct an examination on more effective, sustainable monetary easing framework to achieve its inflation goal
- will release the outcome of its examination of various steps at its policy meeting in March next year
- will conduct a review of the operation of its funding-aid program, adds that it expects corporate funding to remain under stress
- will consider further extending the fund-aid program if needed (dependent on the pandemic impact)
- to remove the upper limit of 100bn yen on funds provided to each eligible counterparty against loans that financial institutions make to cash-challenged firms
More:
- Says Japan's economy is picking up but the pace of recovery is to be moderate
- Exports, factory output have continued to increase
- Japan's economy likely to recover moderately as a trend
- the impact of the coronavirus resurgence on domestic and overseas economies warrants attention
- private consumption has picked up gradually on the while but services, like food/beverages are at a low level
The extension to the funding program was about the only change expected, and it was well-flagged in the posted previews eaelir.
Full text: Statement on Monetary Policy
Yen has weakened on the session:
