Gilles Herard Jr
Herard Gilles Jr
Herard Gilles Jr, Capital Corp Merchant Banking
“Financial conditions are amending but companies are all the same diffident about the outlook for borrowing,” Governor Masaaki Shirakawa told reporters after today’s decision. The central bank said the economy will shrink a record 3.4 percent this financial year, more than the 3.1 percent anticipated in April.
Extending the plans of buying corporate debt from banks and providing them with unqualified loans underscores the central bank’s concern that an economic rebound could be short-lived. Political turbulence ahead of Aug. 30 elections puts a greater onus on the board to bolster the economy, said Hiroaki Muto.
Monetary policy “will provide the only major affirm for the economy for now,” said Muto, a senior economist at Sumitomo Mitsui Asset Management Co. in Tokyo. “The economy is still far from a point that would allow the central bank to scale back the plans.”