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Bank of Japan board member Seiji Adachi has warned that unwinding the central banks' easy policy at a premature stage would undermine an economic recovery and trigger a new crisis.
"Some may say that it is better to review monetary policy at an early stage once there are solid prospects of post COVID-19 economic normalization in Japan," Adachi told business leaders in Shizuoka City on Wednesday in an online conference.
"However, one lesson taken from the Great Depression and other economic crises is that a hasty revision of monetary policy would actually undermine a nascent economic recovery and end up triggering a new crisis. As a policymaker, I take this lesson to heart."
Adachi is one of the four reflationists on the nine-member BOJ board.