The Bank of Japan on Wednesday offered a dim view on exports and output as Asian factories closed, leading to supply issues, but maintained optimism about robust global growth.
- Bank of Japan Governor Haruhiko Kuroda also ignored fears that the debt problems of China Evergrande Group could disrupt the global financial system, indicating that it was still “an individual company’s problem and that of China’s real estate sector.”
- The BoJ maintained its short-term interest rate target at -0.1%, and that for 10-year bond yields nearly 0% at its two-day rate review that closed on Wednesday.
- The BoJ also finalized the details of its green finance program, which will start disbursing loans in December.
- In a statement, the BoJ stated that exports and factory output continue to increase, even though they are partly affected by supply constraints. That was a gloomier view than in July when exports and output “continued to increase steadily.”
The supply chain disruption adds more woes to Japan’s fragile recovery, which has been hurt by weak consumption as the pandemic kept households from boosting spending.
Nikkei 225 down-0.67%, JPY USD down -0.26%
Source: Bank of Japan
