The Bank of Japan surprised investors by joining other central banks with a measure to support climate change mitigation, while standing pat on its main policy levers.
In its decision Friday, the BOJ also pushed back the expiration of its pandemic lending measures by six months, giving Japan’s vaccine drive more time to work. That move was expected by most economists and seen as a tweak around the margins of a policy tool kit that’s largely tapped out.
The new initiative providing funds for bank lending to climate-friendly businesses comes after Gov. Haruhiko Kuroda last month hinted in an interview that the central bank might be looking at ways to support the battle against global warming.