The Bank of Japan left its monetary policy settings (policy rate: -0.1%, JGB yield target: 0%) unchanged as expected, cut its FY2021 GDP forecast to 3.8% from 4.0% but raised the FY2022 forecast to 2.7% from 2.4%, expecting inflation to increase gradually. Downside risks around covid figure prominently. The BoJ outlined fund-provisioning measures to support efforts on climate change. While there are no details, it suggests that central-bank funds will be provided against loans made to address climate change, including green loans/bonds, sustainability-lined loans/bonds and transition finance.
BoJ Keeps Policy On Hold, Cuts FY GDP View
The Bank of Japan left its monetary policy settings unchanged
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