BoJ announced further enhancement on monetary easing after shortening the two-day meeting to just three hours. Short term interest rate is held at -0.1%. Meanwhile, BoJ will purchase JGBs to and T-bills “without setting an upper-limit” to keep 10-year JGB yields at around zero percent.
Other two measures include firstly, commercial papers and corporate bonds purchases upper limit is raised to JPY 20 trillion., with maximum maturity extended to 5 years. Secondly, the Special Funds-Supplying Operates to Facilitate Financing in response to the Novel Coronavirus will expand the range of eligible collateral, counter parities, with 0.1% positive interest rate applied.
