In a speech, BoJ Deputy Governor Masazumi Wakatabe said “downward pressure” on the economy from the resurgence of COVID-19 is “likely to remain strong for the time being”. But the economy thereafter “will follow an improving trend, albeit only moderately”. The economy would be “supported by a recovery in external demand, accommodative financial conditions, and the government’s economic measures.” Risks are “skewed to the downside” though, and BoJ will “continue to examine developments in domestic and overseas economies carefully.”
Wakatabe added that the “the price stability target of 2 percent and the framework of “QQE with Yield Curve Control” have been working well to date”. There is “no need to change them”. The upcoming policy assessment will be conducted “on the manner of operations and various measures such as asset purchases.”
“In conducting the upcoming assessment, I would like to emphasize that the Bank does not intend to tighten monetary easing,” he added. “It also does not aim at only containing costs of policy measures. Rather, the Bank will consider how to be nimble in conducting effective monetary easing while taking care of costs.”
