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September 22 (Reuters) – The Bank of Japan maintained its monetary policy on Wednesday, but offered a darker view of exports and production, raising expectations that the bank will maintain its massive stimulus measures even if its key counterparts are considering withdrawal of support in crisis mode.
The BOJ maintained its assessment of the economy, saying it “is picking up as a trend, while remaining in serious condition due to the impact of the pandemic.”
Here are excerpts from BOJ Governor Haruhiko Kuroda’s comments at his post-meeting press conference, which was held in Japanese, as translated by Reuters:
EXTERNAL REQUEST
“We don’t need to forecast a sharp slowdown in US, Chinese growth… We expect external demand to remain solid.
“While the corporate sector remains strong, consumption is not picking up.
“It’s not because households lack income. Rather, it’s because of the pandemic preventing them from increasing spending… As the pandemic has subsided, consumption is expected to strengthen.”
CHINA’S EVERGRANDE DISEASES
“For now, we see this only as a sole proprietorship issue and that of the Chinese real estate sector… We have to watch if this is affecting global markets. But for now, I don’t see it turning into a plus. big problem. “
AMERICAN ECONOMIES AND CHINA
“In China, the (coronavirus) infections were suppressed fairly quickly… and its economy has recovered steadily. In the United States, various economic indicators show that the economy is recovering rapidly. might slow down, but its growth is still solid.
“With regard to the United States, it is said that there are various impacts of the spread of variants, but when you look at the real economic indicators, consumption and production are increasing very steadily.”
INTEREST RATE
“An excessive cut in super-long interest rates could hurt consumption, which is part of why we introduced YCC. Few central banks have taken such a bold step.
“I do not see recent developments in short-term rates as problematic or contrary to what we are trying to achieve with our monetary policy.”
CONSUMPTION OUTLOOK
“The recent drop in consumption was in a way unexpected. On the other hand, vaccination is progressing rapidly… I think there are enough positive factors when looking at the outlook for consumption.”
(Reporting by Leika Kihara; Editing by Subhranshu Sahu)
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