BoJ’s board member Funo notes that there is uncertainty rising over the global economy’s outlook, particularly from the protectionist moves
More from Funo:
- Given prices, inflation expectations struggle to accelerate, must maintain sufficiently low-interest rates for a prolonged period.
- If risks to price target are foreseen, BoJ will need to prevent them from materialising.
- Risks from overseas economies are high.
- Various possibilities for easing steps.
- If boj were to ease further, rate cuts, boosting asset purchases, expansion in monetary base among the various possibilities.
- BoJ should continue easing persistently.
- Closer attention needed on risks for price momentum.
- Global economy is slowing, downside risks are heightening.
- Attention needed more than ever to risk momentum to 2% target will be hurt.
- Vital to keep rates low for positive output gap.
- Powerful monetary easing stimulating activity among firms and households and is contributing to a positive output gap.
- Must be vigilant to effects unstable overseas economies have on japan’s business, household sentiment.
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