The Bank of Japan expanded monetary stimulus on Monday and pledged to buy an unlimited amount of bonds to keep borrowing costs low as the government tries to spend its way out of the deepening economic pain from the coronavirus pandemic.
The move puts the BOJ in line with other major central banks that have unleashed unprecedented amounts of monetary support as the health crisis stokes fears of a deep global recession.
The central bank also sharply cut its economic forecast and projected inflation would fall well short of its 2 percent target for three more years, suggesting its near-term focus will be to battle the crisis.
Besides, the jobless rate rose in March to its highest in a year, while job availability slipped to a more than three-year low, according to official data released Tuesday.
While Japan’s comparatively low jobless rate is the envy of many nations rises in the politically sensitive figure could lead to calls for Prime Minister Shinzo Abe’s government to do more to stimulate the economy as the coronavirus outbreak and containment measures bite into the job market.
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