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The Bank of Japan (BOJ) is out with a statement following the announcement of launching a new lending facility at its emergency meeting held on Friday.

Key headlines

“Will extend term of loans for lending scheme aimed at combating virus fallout to 6 months from 3 months.“

“Market operation to offer loans under a virus-combatting lending scheme, which will be conducted twice a month from June through Aug, will be conducted once a month from Sept.”

The central bank also extended the deadline for a series of measures it has deployed to combat the virus fallout, including accelerated corporate debt buying, by six months to March 2021.

The BOJ, however, kept monetary policy settings unchanged, with its short-term interest rate target of -0.1% and a pledge to guide the 10-year government bond yield around 0%.

Market reaction

On the BOJ’s fresh policy measures and risk-off market profile, the Japanese yen continues to draw bids.

At the time of writing, USD/JPY challenges low at 107.55, down 0.05% on the day.