BoJ's Kuroda: Aiming to channel funds to companies hit by the coronavirus pandemic

Bank of Japan Governor Haruhiko Kuroda said the central bank may consider extending a March 2021 deadline for lending facilities aimed at channelling funds to companies hit by the coronavirus pandemic, the Yomiuri newspaper reported on Tuesday.

Reuters reports on the matter and explains that in the interview with the daily, Kuroda also said risks to Japan's economy were high as COVID-19 infection numbers were increasing not just in Tokyo but outside the capital city.

Key notes

• Kuroda says if needed, may mull extending march 2021 deadline of steps to support corporate funding - Yomiuri newspaper.
• Says Japan's economy gradually heading toward recovery, but downside risk is big given increase in COVID-19 infections outside of Tokyo - Yomiuri.
• Says expanding loan scheme, cutting short-, long-term rate targets, ramping up ETF buying among options if BoJ were to ease further - Yomiuri.

Market implications

There will be no material or immediate impact to the yen on this subject, although it is risk positive for equities.

Reprinted from FX Street. The copyright all reserved by the original author.

https://www.fxstreet.com/news/...