Tokyo, Dec 16 (EFE) .- The Bank of Japan (BoJ) today began its monthly meeting on monetary policy, in which it will evaluate the need to extend beyond March of next year the financial aid programs for the covid- 19 given the uncertainty generated by the omicron variant.
The financial entity could maintain its policy of monetary flexibility, because the signs of economic recovery in the third world economy in the last quarter are still incipient, according to analysts and local media.
In addition, inflation in Japan continues to be moderate, which contrasts with the European Union and the United States, the latter country where the Federal Reserve has agreed to three increases in interest rates for next year and withdraws earlier than expected purchases of bonds to cope with the price boom.
The BoJ plans to gradually withdraw financial support for large companies, according to local media, but would maintain aid to small and medium-sized companies, most affected by the crisis.
The economic recovery in Japan differs according to the type and size of companies, with differences between manufacturers and service providers and between large corporations and SMEs, with the latter having greater financing needs.
As reported by the BoJ this Monday in its quarterly economic report, known as Tankan, business confidence in the evolution of the Japanese economy remains stable and at the same level as in September, after evolving positively since June.
The economic revitalization in the archipelago coincides in recent months with the drastic decrease in infections throughout the country, the high vaccination rate of the population and the lifting of restrictions that limited economic activity, mainly in the services sector.
During the pandemic, the BoJ granted funds to banks to extend loans to companies affected by the resulting economic crisis, as well as the extensive purchase of corporate bonds and promissory notes to combat the effects of the health crisis.
The BoJ keeps short-term interest rates at negative 0.1% through control of the yield curve and guides the 10-year government bond yield around zero interest.
The consumer price index (CPI) in Japan rose 0.1% last October compared to the same month in 2020, mainly due to the increase in the cost of the energy bill.
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