The Bank of Japan’s March meeting Summary of Opinions states that they must strengthen monetary easing to prevent worsening of corporate, household confidence.
Key notes
- When events are being cancelled and people are told to stay home, what’s necessary is not to stimulate demand but to alleviate corporate funding fears, stabilise markets.
- Priority for time being is to provide ample liquidity, support corporate funding via temporary measures.
- BoJ must deliver massive, quick measures to support households, firms as impact of coronavirus deepening.
- Hope govt takes appropriate, large-scale steps as many people losing opportunities to work, suffering from falling income.
- BoJ can respond flexibly, including holding emergency meeting again, and pace up JGB buying up to its 80-trln-yen per year guideline.
- In times like now, where there are recession fears, BoJ must work with govt to support growth via policy coordination.
- BoJ must closely share information, maintain strong coordination with govt, other major central bank.
More to come…
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