TOKYO: The Bank of Japan (BOJ) is expected to roughly maintain its view the economy will gradually recover later this year from the devastating impact of the coronavirus pandemic, sources familiar with the central bank’s thinking say, even as fears of a second wave of infections cloud the outlook.
The economic views, from the BOJ’s quarterly report due next week, will heighten the chances the central bank will keep monetary policy steady at its rate review on July 14-15, after having ramped up stimulus in March and April.
But the BOJ’s report is expected to warn that risks to the outlook are extremely high, including a second wave of infections that could delay any recovery in global and Japanese growth, the four sources said.
Meanwhile, Japanese Economy Minister Yasutoshi Nishimura said on Monday the government agreed with members of a new panel to expand economic activity from July 10 based on the premise of taking thorough steps to prevent coronavirus infection.
Nishimura also said the government agreed with panel members that the response to the coronavirus outbreak would be different from in April when the country issued a state of emergency, which urged people to stay home and businesses to close. – July 6, 2020, Reuters
