Japanese Central Bank (BoJ) Governor Haruhiko Kuroda issued a statement saying he was ready to take additional monetary easing measures and added that the central bank had not run out of measures to address the impact of Covid-19 on the economy.
Kuroda said the Japanese economy had reached its lowest level in April-June and in general it had improved over the past few months with exports, production and capital expenditure strengthening.
But indications of consumption especially in the services sector are growing relatively slowly and tend to be in a sustained phase until the world gets vaccinated for the Covid-19 pandemic.
According to Kuroda, the Japanese administration is monitoring the effects of the Covid-19 epidemic carefully and is not hesitant to take the necessary additional easing measures.
Japan reported the biggest economic downturn in the second quarter. Analysts expect that the economic recovery will remain modest due to concerns over a second-wave infection that could impact consumption.
Kuroda said Japan's inflation rate is likely to remain negative for some time as the Covid-19 pandemic has pushed consumer demand even further.
He supported the policy of applying a negative interest rate of -01.% Which was imposed on a number of commercial bank reserves. This year alone the BOJ has relaxed monetary policy twice by increasing asset purchases and stimulating the economy with new lending facilities.
