Notice: Trying to get property 'display_name' of non-object in /home/theproficientinv/public_html/wp-content/plugins/wordpress-seo/src/presenters/meta-author-presenter.php on line 40
Economy

BOJ’s Kuroda meets with PM Abe and vows response to coronavirus

imageEconomy1 hour ago (Mar 12, 2020 05:35AM ET)

(C) Reuters. Bank of Japan Governor Haruhiko Kuroda attends a news conference in Tokyo

By Yoshifumi Takemoto and Tetsushi Kajimoto

TOKYO (Reuters) – The Bank of Japan is ready to take further steps to support the economy in the face of the coronavirus epidemic, Governor Haruhiko Kuroda said after a meeting with Prime Minister Shinzo Abe on Thursday.

The government is working on a new spending package that may include cash payouts to households and subsidies to tourism companies hit by a slump in overseas visitors, according to government officials with direct knowledge of the matter.

The size of the package, to be compiled in April, may range from 10 trillion to 20 trillion yen ($96 billion to $193 billion), funded by government bonds, they said.

“There may be little choice but to issue deficit-covering bonds,” to finance the package, one official said on condition of anonymity because of the sensitivity of the matter.

The meeting between Kuroda and Abe – held every few months to exchange views on the economy and markets – came before the BOJ meets next week, when the central bank is expected to ramp up monetary stimulus. They last met in September.

The BOJ would join the Federal Reserve, the Bank of England and, most likely, the European Central Bank. The Fed and the BoE both have cut their benchmark interest rates half a percentage point, and the ECB is all but certain to roll out new stimulus measures when it meets later on Thursday.

Policymakers are working to bolster growth as the coronavirus epidemic attacks their economies, already weakened by trade tensions and slowing global demand.

Kuroda said the BOJ has been providing ample liquidity and stepping up asset purchases in response to recent market moves, which he said were “fluctuating wildly.”

“We’ll take appropriate steps as necessary in a timely manner, while closely monitoring developments,” Kuroda told reporters.

The BOJ has been under pressure to loosen policy at its March 18-19 rate review as slumping stock markets, a spike in the yen and the fallout from the coronavirus epidemic threaten to push the economy into recession.

A survey released on Thursday showed large Japanese manufacturers’ business sentiment fell to a near nine-year low in January-March.

The government is expected to cut its assessment of the economy in a monthly report due later this month, sources have told Reuters, highlighting the widening economic damage from the coronavirus.

BOJ’s Kuroda meets with PM Abe and vows response to coronavirus

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

Your daily news source covering investing ideas, market stocks, business, retirement tips from Wall St. to Silicon Valley.

Disclaimer:

TheProficientInvestor.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 TheProficientInvestor. All Rights Reserved.

To Top