Bank of Japan boosts its coronavirus stimulus plan to more than $1 trillion amid ‘extremely severe’ economic crash
- The Bank of Japan increased its COVID-19 stimulus from 75 trillion yen ($700 billion) to 110 trillion yen ($1.02 trillion) on Tuesday.
- “Japan’s economy has been in an extremely severe situation due to the impact of the novel coronavirus (COVID-19),” the central bank said.
- Japan has been one of the least infected major economies from coronavirus, with fewer than 1,000 people dying in the country — less than 1% of the death toll seen in the US.
- Bank of Japan Governor Haruhiko Kuroda, however, said: “We can’t rule out the risk of a second wave of infections.”
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The Bank of Japan has boosted its coronavirus stimulus plan to more than $1 trillion but fell short of changing interest rates as the central bank signalled it could put its COVID-19 economic measures in place beyond March 2021.
The Bank of Japan increased its stimulus programme from 75 trillion yen ($700 billion) to 110 trillion yen ($1.02 trillion).
The bank’s COVID-19 plan provides zero interest loans to banks if they increase their lending levels to companies. It is intended to prevent a liquidity crunch .