The BoJ decision summarised: - The BoJ..........>

BOJ: The BoJ decision summarised:

- The BoJ formally removed the cap/target for its JGB purchases (which had

become relatively meaningless).

- Restarted its T-Bill purchasing program (was seen as a tail risk by some). Was

taken out of action in 2006.

- Moved to enhance liquidity conditions for SMEs, with the upper limit of the

Bank's cumulative commercial paper and corporate bond purchases lifted to Y20tn,

topping the Y15tn touted by the Nikkei last week. The maximum maturity of assets

eligible for purchase under this mechanism was extended out to 5 years, with

looser single issuer limits applied.

- Looser collateral conditions for the Special Funds-Supplying Operations to

Facilitate Corporate Financing is Response to COVID-19, along with a wider range

of eligible counterparties introduced.

- Phrasing around "price momentum" was removed from the forward guidance.

- https://www.boj.or.jp/en/announcements/release_2020/k200427a.pdf