Japan’s Govt, BOJ committed to making every effort to facilitate corporate financing, maintain market stability

Dhwani Mehta FXStreet

Japanese Finance Minister Taro Aso and Bank of Japan (BOJ) Governor H. Kuroda came out with a joint statement, following the conclusion of the meeting to discuss the economy and monetary policy, in the wake of the coronavirus pandemic.

Key quotes

“Govt, BOJ have closely coordinated to support economic activity, acted aggressively to ensure market stability.”

“Govt, BOJ committed to making every effort to facilitate corporate financing, maintain market stability.”

“Govt, BOJ will work together to bring Japan’s economy back on a solid growth track.”

“There are various uncertainties on how long it takes for the pandemic to be contained, global developments. “

“Aso explained to Kuroda that the govt is working on the second extra budget that includes steps to inject capital to firms struggling from pandemic fallout.”

“Govt, BOJ will work closely together to support the economy.”

Market reaction

USD/JPY is off the lows and looks to regain 107.50, largely tracking the recovery in the European equities and US equity futures. The above statement failed to impress the JPY bulls.

Japan to set up a JPY12 trln safety net to offer capital to firms hit by coronavirus – Nikkei

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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