BOJ Expected to Keep Monetary Policy Unchanged

Politics

Tokyo, Sept. 17 (Jiji Press)--The Bank of Japan is expected to keep its massive monetary easing policy unchanged at a two-day Policy Board meeting from Tuesday, hoping to ensure financing support especially for small businesses.

Also at the meeting, BOJ policymakers will have discussions on the state of the economy, including on the delayed recovery of consumer spending in Japan amid the country's prolonged state of emergency over the novel coronavirus.

In its latest quarterly Outlook for Economic Activity and Prices report, released in mid-July, the BOJ said, "Japan's economy has picked up as a trend, although it has remained in a severe situation" due to the pandemic. The central bank will discuss whether it should revise down its economic assessment by presenting a more cautious view.

With the Japanese government's COVID-19 state of emergency having been extended until the end of this month, more and more officials at the BOJ believe that the timing of a recovery in consumption has been pushed back more than initially assumed, mainly in the restaurant and hotel industries.

In the meantime, major Japanese automakers have been forced to reduce production due to semiconductor shortages since the turn of the year, coupled with delayed supplies of components from Southeast Asian countries, which have been hit hard by the virus.

[Copyright The Jiji Press, Ltd.]

Jiji Press