BoJ board member Goushi Kataoka, a known persistent dove, warned that the Japan economy remained in a “severe state”. The economy is heading toward recovery but “not fast enough.
He added that risks to the outlook are skewed to the downside. In particular, “risks to consumption are heightening” due to surge in Delta infections. “There’s a good chance the impact of the pandemic may last longer than expected,” he added.
Kataoka also continued his push for more aggressive monetary policy easing. “Personally, I believe the BoJ must strengthen monetary easing,” he said, as inflation would remain distant from the 2% target for years.
