Free Trial

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
MNI (Sydney)

Bank of Japan board member Seiji Adachi has emphasised the need for the BOJ to extend lending facilities, as he is worried over continued corporate financing in the face-to-face services sector which has been hit by the pandemic lockdowns.

"The issue with corporate financing is shifting from liquidity to solvency. Accordingly, the funding needs of some firms have begun to shift from borrowing to securing capital funds," Adachi told business leaders in Shizuoka City in an online conference on Wednesday.

"These developments suggest that the environment surrounding the Special Program is changing. At the same time, it is difficult to envisage a clear recovery in face-to-face services consumption until herd immunity is achieved through widespread vaccinations," Adachi said.

"Thus, as long as COVID-19 cases resurge repeatedly, we cannot rule out the possibility of firms having funding difficulties."

The BOJ board is expected to decide to extend the facility as early as the June 17-18 meeting, after the government extended no interest rate and no collateral facilities until the end of this year.
MNI Sydney Bureau | +61-405-322-399 |
MNI Sydney Bureau | +61-405-322-399 |

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.