BOJ INTRODUCED A NEW FUND SUPPLYING MEASURE

The BoJ introduced a new fund-supplying measure for financial institutions against pooled collateral for up to 1 year at a rate of 0%.

Highlights:

  • The Bank of Japan (BoJ) held an unscheduled policy meeting today.
  • It introduced a new scheme which offers loans against pooled collateral to financial institutions at an interest rate of 0% with maturity of up to one year.
  • The measure is geared towards supporting financing for small and medium-sized enterprises (SMEs).
  • The BoJ also decided to extend its existing measures until the end of March 2021.
  • While today’s measures are welcome support, we do not expect the BoJ to touch its current rates within its yield curve control approach.

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BOJ INTRODUCED A NEW FUND SUPPLYING MEASURE

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