BOJ debated future scope to assist green, digital investment - January minutes

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The Bank of Japan must seek ways to encourage corporate investment to promote digitalisation and a carbon-free society, one of its board members said at a January meeting, suggesting that the idea could emerge as a future policy option.

FILE PHOTO: A security guard walks past in front of the Bank of Japan headquarters in Tokyo, Japan January 23, 2019. REUTERS/Issei Kato/File Photo

“It’s important to encourage corporate activities for future growth such as research and development investment, business portfolio reforms, and efforts on digitalisation and decarbonisation,” one of the members was quoted as saying. The debate by the nine-member board suggests the BOJ could come up with additional easing steps to assist Prime Minister Yoshihide Suga’s growth strategy to revitalise the economy.

One member said allowing long-term yields to fluctuate more will not hurt the economy much because many corporate borrowing are linked to short-term rates, the minutes showed.

 

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