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TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Thursday the economy was starting to pick up and was likely to continue recovering thanks in part to the boost from fiscal and monetary stimulus measures.

While consumer prices will fall for the time being due to the impact of slumping oil prices, they are likely to rebound thereafter as the pandemic’s fallout on the economy eases, he said.

“Once the impact of the coronavirus pandemic subsides globally, Japan’s economy is likely to continue improving further as overseas economies resume steady growth,” Kuroda said in a speech to a quarterly meeting of the BOJ’s branch managers.

The upbeat view reinforces market expectations the BOJ will hold off ramping up stimulus for now, and focus on pumping money into the economy with existing lending programmes.

Kuroda said while Japan’s banking system remains stable as a whole, corporate funding conditions remain

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By Leika Kihara

TOKYO, Oct 5 (Reuters)Bank of Japan Governor Haruhiko Kuroda said on Monday uncertainty over the country’s economic and price outlook remained “very high” as the coronavirus pandemic continued to inflict pain on global growth.

Kuroda said the world’s third-largest economy was emerging from a severe downturn caused by the pandemic and was likely headed for a moderate recovery.

But he stressed the central bank was ready to maintain the range of measures put in place to ease corporate funding strains, and to top up monetary support if needed to cushion the economic blow from the health crisis.

“There is very high uncertainty on the economic and price outlook. Risks are skewed to the downside,” said Kuroda in a video message to an annual meeting of securities firms.

While consumer prices will fall for the time being due to sliding oil prices and weak demand,

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(Bloomberg) — Stimulus steps by the Bank of Japan this year are prompting issuance of longer debt to fall, to the detriment of fund managers chasing the extra yield on such securities.

Sales of company notes due in more than five years have dropped 38% in the fiscal year started April 1. Offerings maturing in shorter periods have jumped 35% to a record, according to Bloomberg-compiled data going back to 2009. The shift comes after the BOJ decided to lengthen the maturity of corporate bonds it purchases to five years from three years.



chart: Deal Split


© Bloomberg
Deal Split

The central bank’s corporate debt buying, which it began in 2009 and expanded this year, has helped firms rushing to secure cash to ride out Covid-19. Company notes tend to be riskier than government bonds, so the BOJ’s focus on shorter maturities for the corporate securities helps it avoid locking into those for

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(Bloomberg) — Bank of Japan Governor Haruhiko Kuroda said the central bank will keep close coordination with the new government led by Prime Minister Yoshihide Suga to pull the pandemic-hit economy out of its slump.

Kuroda, speaking to reporters Thursday, sought to reassure investors that the BOJ will keep easing in pursuit of its 2% inflation target and maintain its close relationship with the government after its first leadership change in almost eight years.

The BOJ earlier stood pat on its key interest rate and its asset purchases, a result expected by 95% of 44 economists surveyed by Bloomberg. The bank also upgraded its economic assessment for the first time since the virus hit, reflecting a bottoming of Japan’s slump.



a screenshot of a cell phone: BOJ owns far more assets than Fed or ECB as a proportion of GDP


© Bloomberg
BOJ owns far more assets than Fed or ECB as a proportion of GDP

Suga, who was elected Wednesday for Japan’s top job, has indicated he sees no

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