BOJ Keeps Policy Unchanged; Kuroda Sees Signs of Pickup

Economy Politics

Tokyo, July 15 (Jiji Press)--The Bank of Japan decided to leave its current massive monetary easing policy unchanged Wednesday, while BOJ Governor Haruhiko Kuroda cited signs of the economy recovering from a slump blamed on the novel coronavirus epidemic.

The Japanese economy has recently shown "various signs" of pickup, and domestic consumption and production have "bottomed out," Kuroda told a press conference after the BOJ ended its two-day policy-setting meeting on the day.

But at the same time, Kuroda remained vigilant over a possible second wave of coronavirus infection that has been clouding the outlook, saying that "downside risks are big."

While noting that production and spending on goods have entered into a rapid recovery phrase, he said the pace of recovery will become moderate. Recovery will take a long time especially for the hospitality industry, hit hard by the coronavirus fallout, he said.

At the policy-setting meeting, the BOJ Policy Board voted eight to one to keep its short-term policy interest rate at minus 0.1 pct and guide 10-year Japanese government bond yields to around zero pct.

[Copyright The Jiji Press, Ltd.]

Jiji Press