Bank of Japan (BOJ) Governor Haruhiko said on Monday that each recession has different characteristics and noted that the difference in the severity of the downturn among industries, business types and occupations has been dramatic this time, per Reuters.
Additional takeaways
"Unevenness of recession, ongoing recovery could reinforce three trends; increase in savings, inequality and debt."
"The initial phase of policymakers' crisis response was to provide liquidity support but this will likely change to fixing solvency and corporate viability problems."
"Policymakers face additional challenges of addressing economic inequality and increasing worldwide concerns over climate change."
"The nature of policy responses will also shift from temporary first aid measures to medium- to long-term structural policies."
"Society has undergone irreversible change as it has adapted to the pandemic by expanding and accelerating digitalization."
"Beginning to see light at the end of the pandemic tunnel but light does not clearly reveal the shape of the society and economy we are approaching."
"Advances in digitalization are expected to enhance productivity and benefit a wide range of individuals and firms."
"If fruits of growth are concentrated in a small fraction of society and inequality increases, it may be difficult to achieve inclusive economic growth."
Market reaction
The USD/JPY pair showed no immediate reaction to these comments and was last seen trading flat on the day at 108.93.
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