The Bank of Japan (BOJ) came out with a statement following the announcement of the launch of a new lending facility at its emergency meeting on Friday.
“Will extend loan terms for a loan fallout program to 6 months instead of 3 months.”
“The market operation to offer loans under an anti-virus loan program, which will take place twice a month from June to August, will take place once a month from September.”
The central bank also extended the deadline for a series of measures it has deployed to combat the fallout from the virus by six months until March 2021, including speeding up the purchase of corporate debt.
The BOJ, however, kept monetary policy parameters unchanged, with its short-term interest rate target of -0.1% and a commitment to guide the yield on 10-year government bonds around 0%.
Given the new policy measures from the BOJ and the risk-free market profile, the Japanese yen continues to draw offers.
At the time of writing, the USD / JPY climbed 107.55, down 0.05% on the day.