Market news

26 May 2020

BoJ still seen easing its policy further in 2020 – UOB

FXStreet reports that senior Economist at UOB Group Alvin Liew assessed the recent BoJ event and the prospects of extra easing by the central bank in the next months.

“In its unscheduled Monetary Policy Meeting (MPM) on Friday (22 May), the Bank of Japan (BOJ) as widely expected, kept all of its existing monetary policy easing measures unchanged from the 27 April 2020 MPM.”

“The reason for the emergency MPM is to introduce a new fund-provisioning measure to further support financing mainly of small and medium-sized firms/enterprises (SME).”

“The BOJ will call the three measures, the Special Program to Support Financing in Response to the Novel Coronavirus(COVID-19) (i.e. the Special Program, which will amount to about JPY 75 trillion).”

“With the expansion of the program to help SMEs, the BOJ is likened to have created its own version of the US Federal Reserve’s “Main Street” lending program to channel funding to small businesses, as part of a broader scheme to save companies and to keep the COVID-19 pandemic from pushing the economy deeper into recession.”

“We have long held the view that the BOJ will resume its monetary easing in 2020 and we still expect the BOJ to do more. We believe the central bank will ease further down the road via deepening its negative policy call rate to -0.2% (from -0.1%), with potentially other measures to follow if the domestic economic situation turns even more dire which it most likely will, with the latest plunge in exports and industrial production.”

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Forex Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2020 TeleTrade-DJ International Consulting Ltd

TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. You may change your cookie consent or view our cookie declaration here.

TeleTrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.