Bank of Japan takes additional steps to stabilize market in an emergency meeting on Monday
The Bank of Japan is awaited to acquire other steps to balance the markets and minimize the economic impact from the coronavirus outbreak in an emergency meeting on Monday. They were connected with other central banks and they also tried to calm the investors.
The Japanese central bank was prepared to increase asset purchases and acquire other steps to guarantee small and midsize companies do not face a lack of funds ahead of the March 31 fiscal year end.
Many market investors anticipate that the BOJ would be increasing purchases of risky assets such as exchange-traded funds (ETF), corporate bonds and commercial paper to direct more money to markets and companies via financial institutions.
Intensifying negative interest rates is considered a less likely option due to already ultra-low rates which has affected financial institutions’ profits.
Monday’s meeting will replace the scheduled rate review on March 18-19. BOJ Governor Haruhiko Kuroda is anticipated to hold a news conference after the meeting.