MNI POLICY: BOJ Kuroda - Still Downside Risks; Act If Needed

The are still large downside risks to both economic activity and prices across Japan, although the economy is likely improve as the economy gradually reopens, Bank of Japan Governor Haruhiko Kuroda on Monday warned Monday.

Japan's consumer prices will likely "be negative for the time being" but will turn positive and increase gradually as downward pressure wane, Kuroda told the annual meeting of the Japan Securities Dealers Association.

Kuroda underlined, though, that the outlook for both growth and prices is highly uncertain because of the unknowable impact from a resurgence of coronavirus at home and abroad.

TO ACT IF NEEDED

Kuroda reaffirmed that the BOJ will continue to make efforts to maintain the stability across financial markets and to facilitate corporate financing by steadily implementing current monetary measures, which had so far produced the intended effects.

He added that the BOJ will monitor the impact of the virus and will not hesitate to take additional easing measures if necessary, but didn't elaborate on how and when more easing would be enacted.