Japan’s Aso: Stocks, USD/JPY have been stable – a sign govt, BOJ efforts are having some desired effect

Japan stocks, dollar/yen have been stable, which is a sign that the government and Bank of Japan (BOJ) efforts are having some effect in stabilizing markets, said the Finance Minister Taro Aso while speaking to the reporters on Friday.

Additional quotes

“It was the first time since 2016 for us to meet, which is a valuable setting to ensure we are on the same page on the policy.”

“It's very important that govt, BOJ looking at the same direction in guiding policy.”

Our plan to compile a huge extra budget underscores our concern that Japan’s economy is in a very severe state.

“By holding a meeting with BOJ and govt, we aimed to convey to the world govt, BOJ working as one to combat virus fallout.

“It won't be enough for Japan to contain the virus, other nations must do so too in order for exports, inbound tourism to recover and help Japan’s economy.”

Earlier today, Aso said, the government welcomes the central bank’s new loan scheme to small and mid-sized firms.

In its emergency meeting on Friday, BOJ launched a new loan scheme and extended the deadline for coronavirus-combating steps by six months. However, it kept the short-term interest rate target of -0.1% and a pledge to guide the 10-year government bond yield around 0% unchanged.

• Japan’s Govt, BOJ committed to making every effort to facilitate corporate financing, maintain market stability