The Bank of Japan (BOJ) published the minutes of its April monetary policy meeting, with the key highlights found below.
Agreed strong uncertainty over timing of when pandemic will be contained, impact of virus on overseas, domestic economies.
A few members said prolonged economic weakness could lead to rising credit costs for banks, hurt financial intermediation.
A few members said BOJ should buy bonds aggressively to keep yield curve stably low.
One member said BOJ must scrutinise effectiveness of current policy to avoid return to deflation.
One member said further fall in interest rates could lead them to reach levels deemed 'reversal rate' where negative effect of low rates outweighs positives.
Cabinet office representative said today's BOJ move will enhance effect of govt, BOJ policy mix.
At its shortened one-day virtual monetary policy meeting held on April 27, the BOJ eased policy further, said it will increase the purchases of a corporate bond, and commercial paper. The central bank also pledged to buy an unlimited amount of JGBs.
Meanwhile, it expanded the coronavirus pandemic lending program to around JPY110tln from JPY75 trillion, at its latest June monetary policy meeting. The Japanese central bank left the key monetary policy settings unchanged.
Market reaction
USD/JPY falls back below 107.00 on the above Minutes release, despite the positive open on the Japanese markets.
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