MNI BRIEF: BOJ Keeps Recovery View, Ups Private Consumption

The Bank of Japan board on Friday left its overall economic assessment that the "economy has picked up as a trend, although it has remained in a severe situation due to the impact of the novel coronavirus at home and abroad.”

But the BOJ upgraded its assessment on private consumption as face-to-face services start to recover from pandemic measures. “Private consumption has picked up gradually, with downward pressure stemming from Covid-19, particularly on services consumption, waning somewhat.”

But the central bank largely left its assessment on other economic components and the near-term outlook, see; MNI BRIEF: BOJ Extends Some Covid Measures With Policy On Hold.

“There have been high uncertainties over whether the resumption of economic activity can progress smoothly while public health is being protected. Attention also should be paid to a risk that the effects of supply-side constrains seen in some areas will be amplified or prolonged,” the BOJ added.