BoJ Deputy Governor Masazumi Wakatabe warned today that “it’s necessary to be vigilant against the risk of a decline in the inflation rate.” Temporary external shocks like the coronavirus pandemic could lead to persistent stagnation. And, “in order to address both upside and downside risks to prices, the BOJ must continue to strongly commit itself to achieving its price target.”
Additionally, he said the BoJ must “constantly have deep discussions” on improving its policy. “It’s necessary to give further consideration to what kind of monetary policy should be taken in the COVID-19 era, while referring to discussions being held at other central banks.”
