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.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.