BOJ’s Kato: No plan now to buy municipal bonds, USD/JPY renews two-month highs
|A senior official at the Bank of Japan (BOJ) Takeshi Kato said in a statement on Thursday, the Japanese central bank has no plan now to buy municipal bonds.
“We are able to funnel money smoothly to markets with our JGB buying”, he said, adding that “Japan’s municipal bond market is also small.”
In May, the BOJ launched a 30 trillion-yen ($278 billion) program to support small businesses.
Meanwhile, on Wednesday, the Japanese media outlet, Jiji Press, reported that central bank is considering doubling its financial aid to the small businesses struggling to combat the impact of the coronavirus pandemic.
Market reaction
The yen is running through fresh offers on the above comments, with USD/JPY challenging fresh two-month highs at 109.09. The spot is up 0.18% on the day.
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