Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

BOJ policymakers warned of Japan's recovery delay, China risk

Published 09/27/2021, 08:16 PM
Updated 09/27/2021, 09:01 PM
© Reuters. FILE PHOTO: A security guard walks past in front of the Bank of Japan headquarters in Tokyo, Japan January 23, 2019. REUTERS/Issei Kato

By Leika Kihara

TOKYO (Reuters) -Some Bank of Japan policymakers warned of the risk of a delay in the country's economic recovery as state of emergency curbs to combat the coronavirus pandemic weighed on consumption, minutes of their July meeting showed on Tuesday.

While the nine-member board agreed that robust exports and capital expenditure would underpin growth, some also called for more vigilance to overseas risks such as the fallout from a possible slowdown in China's economy, the minutes showed.

"A few members said the timing of a full-fledged recovery in Japan's economy was likely to be somewhat delayed" compared with their projections in April, the minutes showed.

"Many members said the overseas economic outlook was highly uncertain with various risks," the minutes showed, citing one member as saying the possibility of China's economy decelerating "should be born in mind."

"If the rise in U.S. long-term interest rates accelerated, we must be vigilant to the risk of capital outflows from emerging economies," another member was quoted as saying.

The remarks shed light on policymakers' concern over the fragile state of Japan's recovery, even as they maintained the view the world's third-largest economy was headed for a moderate rebound from last year's pandemic-induced doldrums.

At the July 15-16 meeting, the BOJ kept monetary policy steady but cut this year's growth forecast from April as state of emergency curbs to combat the pandemic hit consumption.

© Reuters. FILE PHOTO: A security guard walks past in front of the Bank of Japan headquarters in Tokyo, Japan January 23, 2019. REUTERS/Issei Kato

Slow vaccinations and a spike in Delta variant cases have forced Japan to extend the curbs through September, accumulating the strain for some businesses.

The government is set decide later on Tuesday to lift all the curbs from next month due to recent declines in new cases, which may give the economy a much-needed boost from pent-up demand.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.