Bank Of Japan Boosts Aid For Coronavirus-hit Firms
Japan's central bank Tuesday ramped up aid for businesses struggling with the fallout from the coronavirus pandemic, as it attempts to ease the recession in the world's third-largest economy.
The Bank of Japan (BoJ) expanded its zero-interest loan programme to firms to 90 trillion yen ($837 billion) from 55 trillion yen. Its total war-chest for companies amounts to 110 trillion yen when corporate bond purchases are taken into account.
"Japan's economy is likely to remain in a severe situation for the time being due to the impact of COVID-19 at home and abroad, although economic activity is expected to resume gradually," the bank said following a two-day policy meeting.
It vowed to "closely monitor" the effects of the virus on the Japanese economy, which has dived into its first recession since 2015.
![Japan is suffering its first recession since 2015](https://d.ibtimes.com/en/full/2994614/japan-suffering-its-first-recession-since-2015.jpg?w=736&f=63ba4cb2f1359c9cfab46b3600086b78)
The BoJ made no change to its ultra-loose monetary policy framework, which involves unlimited purchases of government bonds and a negative interest rate.
Japan was struggling from the effects of natural disasters and a hike in consumption tax even before the pandemic crippled the global economy.
Consumer spending has slowed to a crawl despite Japan's relatively low infection numbers and death toll from the pandemic. A recent spike in cases in Tokyo has raised fears of a second wave.
Along with the central bank, the Japanese government has scrambled to pass emergency budgets -- including one worth nearly $300 billion that passed the parliament last week -- to keep the economy moving.
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