Economics
BOJ Expected to Offer Interest on Green Loans, Tweak Growth View
- Climate program seen being modeled on Covid-19 incentives
- Economists also expect BOJ to forecast slower growth this year
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The Bank of Japan is seen standing pat on its main tools at this week’s meeting while putting meat on the bones of its climate change policy with an offer to pay interest to banks lending to green projects.
The BOJ will also trim its growth forecast for this fiscal year, while boosting next year’s, according to economists polled before a meeting of the central bank that ends July 16. The tweaks would reflect a delay in Japan’s recovery due to renewed restrictions to contain the coronavirus.