BoJ maintains short-term interest rate target at -0.1%.
- Maintains 10-year JGB yield target around 0%.
- Keeps monetary policy steady.
- Decides on details of new loan scheme aimed at boosting lending to small, mid-sized firms hit by coronavirus pandemic.
- Will set aside 75 trln yen for new loan programme to combat coronavirus impact.
- Will extend deadline of programme until March 2021.
- Won't hesitate to ease further if needed.
- Will conduct loans under new lending programme from June.
- New loan programme will target lending based on govt's interest rate, unsecured loan programmes.
- New loan programme will also target non-govt-backed lending to small, mid-sized firms affected by pandemic.
Gov Kuroda will not hold news conference on Friday.
BoJ Monetary Policy Statement – Full Release
Meanwhile, USD/JPY has been choppy within a tight 107.57/76 range as the week draws towards a close. The bears are pressing against a rising trendline which meets a 50% Fibonacci retracement at 107.38 with 108.07 the next resistance to clear for a path to 108.50.
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