Today the OECD suggested that the Bank of Japan should maintain its policy of buying corporate bonds and to continue its quantitative easing measures to fight deflation. BoJ member Seiji Nakamura echoed the sentiment in his statement and called for “extraordinary” policies to be implemented to strengthen Japan’s corporations during the current crisis.
The current lending rate is 0.10% modified last December which doesn’t leave much room for the the Central Bank to issue Monetary Policy via rates and looks to other instruments like bond purchases and adding funds to the banking sector.
