Von Megumi Fujikawa
TOKYO (Dow Jones) – The Bank of Japan (BoJ) is sticking to its loose Monetary policy and launches a new credit facility for banks to fund projects related to climate change. Climate change will have an “extremely large impact” on the economy, prices and financial conditions in the long term, the central bank justified the measure after the meeting of the Monetary Policy Council. The loan program will build on an earlier program to help banks lend to growth sectors of the economy.
During its meeting, the BoJ also decided to extend its measures to combat the consequences of the pandemic by six months. The program with interest-free loans to banks now runs until March 2022. The central bank stuck to the target return for ten-year government bonds of around 0 percent, as well as the deposit rate of minus 0.10 percent. In addition, the BoJ confirmed the purchase volume for listed funds (ETF) at 12 trillion yen.
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(END) Dow Jones Newswires
June 18, 2021 01:03 ET (05:03 GMT)
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