Categories: Business

More government bonds: Japan’s central bank continues to ease monetary policy

Japan’s central bank is taking further steps to combat the economic upheavals caused by the coronavirus crisis.

The aim is to reassure financial markets and provide further liquidity. The Bank of Japan (BoJ) announced on Monday that more government bonds and corporate securities will be purchased, among other things. Moreover, the BoJ no longer wants to stick to its target for increasing the amount of money by 80 trillion yen (about 700 billion euros) per year. Market circles were expected to see further easing of monetary policy after the BoJ took further steps in March.

Economists fear that the world’s third-largest economy has slipped into recession as a result of a controversial increase in excise duty last year and the aftermath of the Corona crisis. “Japan’s economy is likely to remain in a serious situation until further notice,” the BoJ said, pointing to the consequences of the coronavirus at home and abroad. To mitigate the impact of the Corona pandemic on the economy, the government recently approved the largest ever stimulus package worth 108 trillion yen (916 billion euros). At the same time, the state declared a state of emergency throughout the country, even if that does not mean curfews, as in Europe.

Japan’s gross domestic product (GDP) fell by 7.1 percent year-on-year in the final quarter of 2019, the sharpest since the April-June 2014 quarter. This was mainly due to an increase in VAT last year. Now there is the Corona crisis. As a result, analysts in Tokyo fear that Japan has slipped back into recession. A recession is called when economic output declines for two quarters in a row.

In its quarterly outlook, the central bank also lowered its growth forecast for the fiscal year ended March 31 and now expects the economy to contract by three to five percent. In January, Japan’s currency watchdog had expected growth of 0.9 percent. The future development is “extremely unclear,” the BoJ said. This depends on when the virus abates and on the extent of the consequences for domestic and other economies. Still, Japan’s economy is expected to recover in the fiscal year just begun, reaching growth of 2.8 percent to 3.9 percent, the central bank said.

AddThis Website Tools
Matthew Velter

With 5 years of experience as an editor, Matthew has been a crucial part of eTrendy Stock since its inception. He looks after the editing of news content published on eTrendy Stock. Apart from investing his time in editing, he also provides well-researched news articles for the U.S. niche. Mathew studied at University of central Florida.

Recent Posts

Ripple’s RLUSD Stablecoin Sees Muted Launch, $3 Million in Daily Trading Volume

Ripple’s highly-anticipated stablecoin RLUSD has seen a relatively muted launch, with trading volumes in the…

20 hours ago

Bitcoin ETFs Face Record Outflows Amid Market Decline

Bitcoin exchange-traded funds (ETFs) experienced a substantial sell-off on December 19, recording net outflows of…

1 day ago

Paytora Simplifies Your Finances: Instant Crypto Conversion with an All-in-One Platform

Vancouver, Canada, 20th December 2024, ZEX PR WIRE, Paytora, an all-in-one digital banking platform that…

2 days ago

Crypto Liquidations Exceed $1B Following Controversial Fed Statements

The Federal Reserve announced a 25 basis point interest rate cut, reducing the federal funds…

2 days ago

Numogram ($GNON) Selected for Ryze Labs AI Combinator Program, Launches Revolutionary Agent Platform

New York, USA, 20th December 2024, ZEX PR WIRE, Numogram ($GNON), a Solana-based project, announces…

2 days ago

AngelVerse Announces Presale and Upcoming Utility-Driven Gym-Based NFTs

Dubai, UAE, 20th December 2024, ZEX PR WIRE, AngelVerse is set to go live with…

2 days ago