BOJ Ready to Extend Pandemic-Relief Programme

The Bank of Japan will consider extending its pandemic-relief programme beyond the current September deadline if necessary, Governor Haruhiko Kuroda confirmed.

Kuroda said Japan remains on a path toward recovery as robust exports and corporate profits offset some of the pandemic's damage to consumption, but even he can not ignore the fact that a spike in COVID-19 infections is tough on the economy. He has additionally warned that there is high uncertainty about the pace of vaccine rollouts, which could further aggravate long-term pressure on the country’s economic standing.

”For the time being, risks to Japan's economic outlook are skewed to the downside," Kuroda said "Taken into account the impact of the pandemic, we will consider extending further the deadline for BOJ's measures to ease corporate funding strains caused by the crisis”.

"Economic activity will remain below post-pandemic levels for the time being. The near-term focus would be to respond to the pandemic's impact“, Kuroda said.

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