BOJ’s Amamiya: Risks to outlook skewed to downside

The Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya warned on Wednesday, the risks to the Japanese economic outlook remain skewed to the downside.

Additional comments

Japan's economy picking up as a trend.

Consumption stagnating but likely to recover ahead.

Corporate profits under pressure from rising global commodity costs but likely to continue improving.

Japan's economy is likely to see positive cycle strengthen as positive moves in corporate sector spread to households.

If vaccinations accelerate, economic activity could heighten more than expected.

Must scrutinise impact of global commodity inflation on Japan’s economy.

There is uncertainty on how pandemic affects companies' price-setting behaviour.

BOJ must continue powerful monetary easing.

BOJ’s climate scheme aimed at avoiding intervening in distribution of assets among specific industries, firms.

Role of monetary policy on climate change should focus on affecting economy as a whole.

Regulation, subsidies regarding climate change must be left for govt, parliament.

Hope BOJ’s climate scheme assists private-sector efforts on combatting climate change.

Market reaction

USD/JPY eases from 110.00, although remains better bid on the BOJ headlines. The spot was last seen trading at 109.89.

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