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TOKYO (MNI) - The impact from coronavirus on Japanese and global economies
may be large and the Bank of Japan stands ready to deal with any increase in
downside risk to price momentum, Governor Haruhiko Kuroda said Tuesday .
Kuroda told lawmakers it was difficult to assess the impact right now, but
he said if economic activity was restricted in China, "supply chains for
manufacturers will be affected and tourists from China will fall."
"Investors' sentiment has turned cautious and the BOJ is carefully
monitoring the impact on economic activities and prices as well as financial
markets. The BOJ stands ready to take the surest measures if needed," he said.
"It is premature to say (that the BOJ will implement) additional easy
policy and what kinds of additional easing the BOJ would implement," the
Kuroda added that he will exchange view on the impact of the coronavirus on
the global economy at international meetings.
The Chinese economy accounts for about 18% of global economic growth
recently, up from about 4% in 2003 when the global economy was hit by the SARS
Kuroda also said that he doesn't expect net purchases of Japanese
government bonds by the central bank to turn negative, although lower interest
rates globally continues to enable the BOJ to reduce the scale of JGB buying.
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