The Bank of Japan should look for ways to enhance the sustainability of the policy measures given that monetary easing is expected to be prolonged, a policymaker said at the monetary policy meeting held on October 28 and 29.
The banker noted that it is necessary to continue with active purchases of exchange-traded funds and Japan real estate investment trusts for the time being. But the bank should ensure the sustainability of these measures so that it will not face difficulty in conducting such purchases when a lowering of risk premia of asset prices is absolutely necessary, the summary of opinions showed.
The summary revealed about the concern of policymakers about the spread of Covid-19 again and its impact on economic activity and consumer prices.
If Covid-19 spreads again and economic activity is pushed down, the CPI could stay in negative territory for a protracted period and deflation might take hold, a member said. This possibility warrants attention in conducting monetary policy.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2166835/
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