In the Summary of Opinions at BoJ’s January 20-21 meeting, it’s noted, “the impact of the reinstatement of the state of emergency for 11 prefectures… should be monitored carefully given that private consumption in these prefectures accounts for nearly 60 percent of Japan’s.” While downward pressure is “likely to be strong for the time being”, the economy is expected to “maintain its moderate improving trend”.
BoJ also noted, “this year, it is necessary to closely monitor the broad impact of political developments overseas, such as the change of government in the United States and the replacement of the Chancellor of Germany, on economic activities and financial conditions at home and abroad.”
On monetary policy, one member said, “in terms of yield curve control and purchases of assets such as exchange-traded funds (ETFs), it is crucial for the Bank to conduct them more flexibly in a prioritized manner while maintaining the current policy framework.”
