Japan | BoJ introduces new scheme to address climate change
Beyond leaving monetary policy settings unchanged at meeting on 18th June, the Bank of Japan also extended the deadline of its funding-for-lending scheme targeted at the victims of pandemic to March 2022 from September 2021. With additional incentives from the tweaked reserve-tiering system, the scheme will encourage banks to support firms’ balance-sheet adjustment in coming years.
What you will learn:
- Surprisingly, the BoJ also announced its plan to start a new funding-for-lending scheme to address climate change before the end of this year.
- Since strengthening incentives for funding-for-lending schemes at the March meeting, the BoJ had hinted it would expand the scope of the schemes to address various structural challenges including climate change.
- With little room left for a rate cut and less appetite for asset purchases, the BoJ can still add to its easing efforts, even with limited impact.
Tags:
Related Services
Post
New Activity Trackers suggest momentum is waning
After a choppy first quarter of GDP data, our novel Activity Trackers (which incorporate proprietary daily sentiment data from Penta) suggest that economic momentum in EM Asia is on a softer trend in Q2 (at least outside of China) supporting our view of easing underlying inflationary pressures and diminishing appetite for further rate hikes.
Find Out More
Post
What AI means for economies, businesses, jobs & cities
Artificial Intelligence has the potential to fix the world's productivity problems, just as previous general purpose technologies such as steam power, electricity, and computers have, in our view.
Find Out More