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How the consumer recovers from Delta variants, along with the impact of supply chain restrictions, will be main factors determining how quickly Japan's economy picks up post-Covid, Bank of Japan Governor Haruhiko Kuroda told business leaders in Osaka City via an online conference.
"The key question is whether private consumption turns to a recovery while the economy is supported by firm developments in the corporate sector, thereby intensifying the virtuous cycle in the overall economy," Kuroda added.
He said pent-up demand would help support a rebound of consumption, but noted that the timing and pace of any recovery was largely dependent on the course of the pandemic, although he stressed the BOJ will not hesitate to take additional easing measures if necessary, without elaborating on when and how the BOJ would take policy action.