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Japan's economy is likely to recover:Bank of Japan

  • Jun 17, 2022, 09.45 AM
  • DealMoney News Service

The Bank of Japan stated that Japan's economy is likely to recover, with the impact of COVID-19 and supply-side constraints waning and with support from an increase in external demand, accommodative financial
conditions, and the government's economic measures

Bank of Japan stated that it will apply a negative interest rate of minus 0.1 percent to the Policy-Rate Balances in current accounts held by financial institutions at the Bank.

The Bank will purchase a necessary amount of Japanese government bonds (JGBs) without setting an upper limit so that 10-year JGB yields will remain at around zero

The Bank will purchase exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs) as necessary with upper limits of about 12 trillion yen and about 180
billion yen, respectively, on annual paces of increase in their amounts outstanding.

Japan's economy has picked up as a trend, although some weakness has been seen in part, mainly due to the impact of COVID-19 and a rise in commodity prices, stated Bank of Japan.