The Bank of Japan (BOJ) board member Kataoka is back on the wires now, via Reuters, noting that BOJ must send message to markets that it will not tolerate price falls.
Doesn’t think additional easing is needed against coronavirus risks.
It is most important for BOJ to first scrutinise the impact on the economy.
If necessary, BOJ won’t hesitate to ease further.
BOJ has various options if it needs to ease further.
Strong signal is needed to convey the message that sluggish prices are unacceptable.
Framework review should look at what among boj’s steps were effective, not effective then ponder next policy step.
Policymakers must take steps to ease public anxiety over coronavirus outbreak.
Monetary policy takes time for effect to appear on economy, so if economy worsens sharply, fiscal, structural policies may also be needed.
If policy review takes a long time to do, that’s all the more reason to do it as early as possible.