In the summary of opinions of BoJ’s March 16 meeting, it’s noted that “global financial and capital markets have been unstable” and “Japan’s economic activity has been week” due to growing uncertainties over coronavirus pandemic. “Downward pressure on Japan’s economy has been increasing due to a constrain on economic activity”. Firms are facing a “sudden deterioration in business conditions” and “the situation has been very serious”.
It’s also warned that the impact of the pandemic can be “significant and not just temporary”. And there is concern that the economy could “remain weak even after overseas economies recover”. There are “doubts regarding the scenario that the economy will strongly recover after the crisis caused by COVID-19 recedes.”
Regarding policy responses, “it is essential to maintain a strong cooperative framework between the Bank and the government as well as among major central banks, while closely sharing information.”
