Japan's economy remains in a severe state but the economic recovery has started to pick up, the Bank of Japan (BOJ) board member Takako Masai said in a scheduled speech on Monday.
Additional comments
“Japan's economy likely to improve as a trend, though personally am more cautious on outlook.”
“Japan's exports, output levels were falling even before the expansion of COVID-19.”
“Uneven recovery seen across regions may lead to gap in policy direction, which is a risk that warrants attention.”
“If households' wages, job conditions worsen, that could affect corporate price-setting behavior.”
“Monetary easing steps will likely stay for a prolonged period, so it must guide future policy taking this point into account.”
“It is extremely important to be more vigilant to side-effects of prolonged easing, ensure BOJ's policy remains sustainable.”
“It will become even more important to debate how best to ensure the sustainability of BOJ's steps, such as its ETF buying.”
“BOJ's balance of ETF holding has reached quite a significant size after 10 years of buying.”
“BOJ must be actively engaged in the global debate on the impact of climate change on financial stability.”
“BOJ must play a supporting role in boosting Japan's productivity.”
“Japan's negative output gap likely to remain quite big for time being, the pace of recovery moderate.”
“Inflation expectations, which moving on a weak note, may take time to resume the uptrend.”
Separately, Japanese Foreign Minister Motegi said that it “will likely take two years for Japan economy to fully recover from coronavirus impact.”
Market reaction
The Japanese yen is unperturbed by the above comments, as USD/JPY holds the lower ground near 104.50, down 0.09% on the day.
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