Following are the key findings from the Bank of Japan’s (BOJ) examination of the monetary policy, which was released along with the policy statement this Friday.
Key quotes
Policy examination: excess lowering of long-term interest rates could negatively affect economic activity in long run.
Will steer yield curve control by prioritizing keeping yield curve stably at low levels.
Will buy CP, corporate bonds of up to around 20 trillion yen until end-September.
Will guide YCC prioritising need to keep entire yield curve stably low as impact of covid-19 continues.
BOJ staff will report to board immediately when it buys ETF, REITS.
From now on, BOJ will only buy ETFS linked to Topix.
Will continue buying certain amounts of CP, coroprate bonds even after September deadline.
BOJ’s monetary policy meeting will hear on a quarterly basis report on financial system from its division in charge.
Will buy ETFs, REITs when necessary even after pandemic subsides, while maintaining the current ceilings for these asset-buying programmes.
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