16.06.202005:49:00UTC+00BOJ Holds Monetary Policy Steady

The Bank of Japan kept its key interest rate unchanged and expanded the size of the coronavirus lending program to support the pandemic-hit economy.

The Policy Board of the BoJ voted 8-1 to retain the interest rate at -0.1 percent on current accounts that financial institutions maintain at the central bank.

The bank will continue to purchase a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

The central bank has raised the size of the coronavirus lending program to JPY 110 trillion from JPY 75 trillion.

The credit easing measures implemented included purchasing corporate debt and lending measures to support small businesses and households.

The bank added that the Japanese economy is likely to remain in a severe situation for the time being due to the impact of COVID-19 at home and abroad.

The BoJ reiterated that its policy interest rate would remain at present or lower levels.

Also, the bank said it would closely monitor the impact of COVID-19 and is prepared to take additional easing measures if necessary.