Economic news

HIGHLIGHTS-BOJ Governor Kuroda's Comments at News Conference

Oct 29 (Reuters) - The Bank of Japan on Thursday trimmed its economic and price forecasts for the current fiscal year, but offered a more upbeat view on the recovery outlook, signalling that it has delivered enough stimulus for the time being.

Following are comments from BOJ Governor Haruhiko Kuroda at his post-meeting news conference:

ECONOMY OUTLOOK

“The outlook of Japan’s economy remains highly uncertain and bound with downside risks. Some countries are reimposing lock-down measures, so the situation remains uncertain ... Markets remain jittery, so we need to monitor developments carefully. We will maintain our monetary-easing steps ... and won’t hesitate to take additional measures as needed.”

CRISIS-RESPONSE PROGRAMME DEADLINE

“There’s no change to our stance of being open to extend the March 2021 deadline for the crisis-response programme, depending on future developments regarding the pandemic. If we deem necessary and appropriate, we will extend the deadline.”

RESURGENCE OF COVID-19 CASES

“While we are seeing a resurgence in infections, the U.S. economy is recovering pretty well. Some European countries are re-imposing lockdown measures, but even so, they are done in a targeted way that seeks the need to keep economic activity open and prevent the spread of the virus.”

COVID-19 IMPACT ON EMERGING ECONOMIES

“While countries such as China and some advanced economies have ample fiscal and monetary scope, that may not be the case for some emerging economies, so we need to watch developments carefully. Still, I don’t think we’ll see a repeat of what happened during the Lehman crisis and the Asian financial crisis.”

BOJ PURCHASE OF EXCHANGE-TRADED FUNDS

“If the economy and markets stabilise, we will discuss an exit. But this operation is part of our policy framework. For now, I think our ETF buying continues to be an important part of our monetary policy framework.”

JAPAN’S FINANCIAL SYSTEM RISK

“For now, the risk (of a financial system destabilisation) isn’t big due to bold government and BOJ measures. But we will carefully monitor the impact of the pandemic on Japan’s financial system without any preconception. We’re ready to respond to various scenarios under close coordination with the Financial Services Agency.”

(Reporting by Leika Kihara; Editing by Sherry Jacob-Phillips)

Source: Reuters


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