- The Bank of Japan (BoJ) held an unscheduled policy meeting today.
- It introduced a new scheme which offers loans against pooled collateral to financial institutions at an interest rate of 0% with maturity of up to one year.
- The measure is geared towards supporting financing for small and medium-sized enterprises (SMEs).
- The BoJ also decided to extend its existing measures until the end of March 2021.
- While today’s measures are welcome support, we do not expect the BoJ to touch its current rates within its yield curve control approach.