MNI BRIEF: BOJ Minutes: Board Sees Downside Risk to Economy

Bank of Japan board members shared the economy may deviate from the baseline scenario at the Oct. 27-28 meeting, minutes released on Wednesday showed.

The board members “shared the recognition that, if people's vigilance became entrenched due, for example, to the spread of highly contagious variants, there was a risk that economic activity would deviate downward from the baseline scenario,” see: MNI STATE OF PLAY: BOJ Stays Covid Easy As Policy Lags Big CBs.

The members also shared the view “economic activity could improve by more than expected because if, for example, public health was protected and people's vigilance lessened significantly with the widespread vaccinations and the rollout of antiviral medicines, pent-up demand for services consumption would materialise relatively early.”