BOJ's Large-scale Easing Measures Continued Focus on discussions at monetary policy decision meeting 5:10, August 29
Following the resignation of Prime Minister Abe, the financial markets are paying attention to the future direction of monetary policy by the Bank of Japan. The Bank of Japan is planning to continue the current large-scale monetary easing measures in order to support the economy that has dropped significantly due to the effect of the new coronavirus, and for the time being, at the monetary policy decision meeting held in the middle of next month. Discussion will be the focus.
The Bank of Japan, under the inauguration of the second Abe administration, took on a large-scale monetary easing policy that was unprecedented under the presidency of President Kuroda in March 2013, and then keeps pace with the government's economic policy "Abenomics". In the form of strengthening monetary easing.
In response to this, the yen continues to depreciate in the foreign exchange market, business performance of export companies and other companies is improving, and the Nikkei 225 stock price, which had fallen below 10,000 yen before the start of the administration, also rose to a level above 20,000 yen. did.
For this reason, when Prime Minister Abe told that he had decided to resign on the 28th, the stock price temporarily dropped by more than 600 yen due to swelling of sell orders in the Tokyo stock market.
In the financial markets, there are moves to determine the direction of monetary policy that has supported the yen's depreciation and high stock prices, but the Bank of Japan is in an extremely difficult situation not only for the Japanese economy but for the entire world economy due to the new coronavirus. Above all, it is necessary to continue the current large-scale monetary easing measures.
The BOJ will hold a monetary policy meeting for two days from the 16th of next month, but with the long-term administration that lasted 7 years and 8 months ending, there is concern about the impact on economic policy What kind of discussion will be held in is the immediate focus.