BoJ Governor Haruhiko Kuroda told the parliament that there is no need to “overhaul our projections” despite resurgence of coronavirus infections globally. The central bank forecasts the economy to contract -5.5% in the fiscal year ending March 2021, then expand 3.6% in the following year.
“Our view is that Japan isn’t heading toward deflation, though we’re watching developments in service consumption and capital expenditure carefully,” he added.
Kuroda also said, “there is no need now to review our policy framework. But there could be debate at an appropriate timing in the future.”
