Bank of Japan monetary policy board member Adachi with some warning words.

  • monetary policy has a bigger role to play in offering safety net to those affected by covid-19, rather than directly supporting structural reforms
  • maintaining accommodative monetary policy will help normalise economic activity, achieve BOJ's price target in medium- to long-term horizon
  • no big problem seen in corporate funding now but outlook highly uncertain
  • if pace of economic recovery is much slower than expected, cannot rule out risk of increase in corporate bankruptcies, business closures