The bank believes that though there will be a drop in economic output, it will resume a moderate recovery and will take the necessary steps to contain the economic fallout.
The central bank said that damage caused with the earthquake is in a wide area and it may impact the output for some time.
In addition to the 15 trillion yen of emergency funds deployed in the central bank, the Bank of Japan offered to buy 3 trillion yen of government bonds from lenders in repurchase agreements starting 16 March.
The estimates of the damages also remain sketchy. Most of the country’s factories were forced to close due to power outages, while others have reported flooding or quake damage.
The central bank has added that there were no system glitches or funding issues at Japanese financial institutions, including those in the quake-struck region.
