BOJ’s Wakatabe: Prolonged US - China trade tensions could exert increasing downward pressure on global economy

More comments are hitting the wires from the Bank of Japan (BOJ) monetary board member Wakatabe, as he talks about the downside risks to the economy.

The Japanese economy is no longer in deflation.

We need to be increasingly vigilant to downside risks.

The economy likely to expand moderately as a trend.

Tools like QQE, negative rates, forward guidance will likely be used depending on economic conditions.

If US-China trade tensions are prolonged, that could exert increasing downward pressure on the global economy.

If the slowdown in overseas growth persists, that would weigh on Japan's domestic demand.

Appropriate for now to maintain the current policy framework.