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MNI BRIEF: BOJ Kataoka: Downside Risk To Spending Increases

(MNI) Tokyo
TOKYO (MNI)

Downside risks are growing on private consumption spending in Japan after the expanded and extended measures to stem Covid-19, infections, Bank of Japan board member Goushi Kataoka said on Thursday, adding that the central bank could take additional monetary steps if warranted.

"The spread of coronavirus will lower private spending and corporate capital investment through a worsening of households' and firms' sentiment," Kataoka told business leaders in Nagasaki City via an online conference in prepared remarks. He added that would "in turn increases the risk that stagnation of prices would be prolonged."

Current emergency measures against Covid-19 extend to Sept. 12, and cover 13 prefectures.

Kataoka is the second board member in as many days to warn that downside risks threaten to delay economic recovery in Japan and suggest possible monetary steps in response, see: MNI BRIEF: Downside Risk May Prompt Policy Steps: BOJ Wakatabe.

Kataoka has dissented on policy decisions at past meetings, suggesting a prolonged period of weakness from pandemic conditions at home and globally, and emphasized the need to strengthen easy policy. But he has not offered specific policy changes.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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