The Bank of Japan’s March meeting Summary of Opinions states that they must strengthen monetary easing to prevent worsening of corporate, household confidence.
- When events are being cancelled and people are told to stay home, what’s necessary is not to stimulate demand but to alleviate corporate funding fears, stabilise markets.
- Priority for time being is to provide ample liquidity, support corporate funding via temporary measures.
- BoJ must deliver massive, quick measures to support households, firms as impact of coronavirus deepening.
- Hope govt takes appropriate, large-scale steps as many people losing opportunities to work, suffering from falling income.
- BoJ can respond flexibly, including holding emergency meeting again, and pace up JGB buying up to its 80-trln-yen per year guideline.
- In times like now, where there are recession fears, BoJ must work with govt to support growth via policy coordination.
- BoJ must closely share information, maintain strong coordination with govt, other major central bank.
- Govt representative said welcomes BoJ’s move as helping smooth corporate funding, stabilise markets.
- Govt representative said hopes BoJ and govt can continue to send strong message to public of their resolve to cooperate closely on policy.
- There is a risk impact of coronavirus outbreak on japan’s economy could be prolonged and big, given infection spreading globally.
BoJ March meeting summary of opinions: japan’s economy may continue to stagnate even after overseas economies recover given impact of coronavirus could be enormous.
- Doubtful japan’s economy can stage a strong rebound once virus contained as domestic demand had already slumped due to tax hike, natural disasters.
More to come…