Bank of Japan says that while the economy is picking up risks from a resurgence in COVID-19 remain and continue to warrant attention
- Japan's economy is likely to recover mainly on external demand, but the outlook remains highly uncertain
- economy may see a sustained recovery once the pandemic subsides with households accumluating savings and deposits .... economy to benefit from unleashing pent-up demand
- risks to Japan's economy remain skewed to the downside due to uncertainty over pandemic fallout
- global economic recovery remains uneven, also faces risks such as peak-out in growth, premature withdrawal of policy support
- must be vigilant to chance of incidents similar to collapse of US family office
- price falls among companies to draw in demand not broadening, inflation likely to gradually accelerate as economy improves
- inflationary pressure lacks strength in japan
- BOJ must focus on pandemic impact response as service sector remains under downward pressure
more to come
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At the April meeting the major planks of policy were left unchanged:
- short-term interest target kept at -0.1%
- 10 year JGB yield target remains around 0%
- ETF buy cap stays at 12tln yen
The BOJ did nudge its forecasts for economic growth higher.
Link here if you are after the background info to today's 'Summary' from the Bank":
