In the branch managers’ meeting, BoJ Governor Haruhiko Kuroda said “economic activity is expected to gradually resume”. But, for the time being “severe situation will continue due to the impact of infectious diseases both inside and outside Japan”.

“If the impact of the infectious disease then subsides, pent-up demand (restricted demand) is expected to emerge and recovery production is expected. As a result, the Japanese economy is expected to improve,” he added.

As for monetary policy, Kuroda said “we will closely monitor the effects of the new coronavirus infection and, if necessary, take additional monetary easing measures without hesitation. It is assumed that the policy interest rate will remain at or below the current level of long and short interest rates.”

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