At the post meeting press conference, BoJ Governor Haruhiko Kuroda said the coronavirus has already has an impact of Japan’s economy through “decline in inbound tourism, as well as on exports, output and consumption”. Also, “event cancellations and people staying home have led to a sharp slump in consumption.”. Hence, BoJ revised down economic assessment.
Additionally, “given the fact the epidemic is spreading with a lag among various countries, the impact of the virus could continue for the time being.” Nevertheless, he’s optimistic that “once the impact is mitigated demand could pick up”. Japan’s economy would resume a “moderate expansion trend” then.
He also emphasized that it was “necessary to take necessary action quickly, particularly ahead of the March fiscal year-end, to ensure corporate financing remains smooth and markets restore stability.”
