The announcement from the BoJ that it will hold an unscheduled policy meeting on May 22 is likely aimed at promoting an image of a nimble central bank, per Rabobank.
Key quotes
“The purpose of the meeting is to outline the details of the Bank’s scheme to provide cheap loans to small businesses. Businesses will be able to borrow at just 0.1% from financial institutions who will be able to take loans from the BoJ at zero percent.”
“Even though we don’t expect much reaction in the JPY from a new set of policy measures from the BoJ this week, this belies the enormity of the actions taken by policymakers.”
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