In the Semiannual Report on Currency and Monetary Control, BoJ Governor Haruhiko Kuroda said the “powerful monetary easing measures” will support economic and financial activities, together with the government’s coronavirus measures. He also reiterated the pledge to monitor the coronavirus impacts and BoJ “will not hesitate to take additional easing measures if necessary.”
He noted again that the economy has been in an “increasingly severe situation” and is “likely to remain the case”. But thereafter. the economy is “likely to improve” supported by accommodative financial conditions and government’s measures, as well as through the “expected materialization of pent-up demand and a projected recovery in production from the decline brought about by the spread of COVID-19.”
Still, outlook is “extremely unclear” depending on ” the timing of the spread of COVID-19 subsiding and on the magnitude of the impact on domestic and overseas economies”. Risks are “skewed to the downside.