BoJ Governor Haruhiko Kuroda admitted, “it’s true Japan’s economy has been held back by the successive waves of COVID-19.” “While corporate funding conditions have improved from a while ago, those of firms offering face-to-face services remain severe,” he added.
“Given high uncertainty over the outlook due to the spread of the Delta variant, the BOJ must continue to focus on responding to the pandemic for the time being,” he said.
Meanwhile, Kuroda is not concerned about the supply shortages that manufacturers are facing. “This will only be transitory, and from a somewhat long-term perspective, exports and production are expected to continue on an increasing trend, partly supported by the restocking of inventories and a recovery in production from the decline brought about by the supply-side constraints,” he said.
