BoJ board member Hitoshi Suzuki said in a speech, “to achieve the price stability target of 2 percent, the Bank is expected — even after COVID-19 subsides — to persistently continue with further effective and sustainable monetary easing”.
However, it’s also necessary to “pay attention to the possibility that credit costs will increase due to a delay in economic recovery at home and abroad”. Also, “downward pressure on financial institutions’ core profitability is likely to persist as a trend even after COVID-19 subsides”.
“My view is that the Bank should pay due attention to the fact that side effects of monetary easing will accumulate over time,” he added. “The Bank will continue to conduct monetary policy in an appropriate manner so as to fulfill the two missions of achieving price stability and ensuring the stability of the financial system.”