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A few Bank of Japan board members expressed the view that the timing of a full-fledged recovery in the economy was likely to be somewhat delayed compared to the forecast shown in the April 2021 Outlook Report, reflecting the impact of the recent resurgence of COVID-19, the minutes of the July 15-16 meeting released on Tuesday showed.

"Many members expressed the view that this outlook entailed high uncertainties as there were various risks," the minutes showed.

"Specifically, members pointed to the following risks: the course COVID-19 would take, including variants; the pace of the vaccine rollout and the effects of the vaccines; the effects of macroeconomic policies taken in each economy; and geopolitical risks, such as those concerning the tension between the United States and China."

"One member drew attention to the reduction in the reserve requirement ratio in China and noted that the risk of the Chinese economy decelerating should be borne in mind. A different member said that, if the rise in U.S. long-term interest rates accelerated, the risk of capital outflows from emerging economies warranted vigilance," the minutes showed.