BoJ March meeting minutes: Several board members said consumer, household sentiment could sour rapidly
|In the Bank of Japan March meeting minutes, it has stated that several board members said consumer, household sentiment could sour rapidly if markets remain unstable.
Key notes
- A few members said spread of pandemic was inflicting severe impact on Japan's economy via drop in inbound consumption, supply chain disruptions.
- One member said firms may hold off on CAPEX amid uncertainty over outlook.
- One member said economic damage from pandemic could be enormous, may not be temporary.
- A few members said it was uncertain whether economy can make strong rebound after pandemic is contained.
- One member said companies, regardless of size, were seeing profits fall sharply.
- One member said ramping up BoJs cp, corporate bond buying now would forestall risk of deterioration in market conditions.
- One member said doubling of ETF,J-REIT buying would heighten market confidence, also gives BoJ some flexibility on future operation by saying move would be 'for time being'.
- One member said BoJ can hold emergency meeting to respond flexibly to pandemic fallout, can buy JGBs at annual pace of up to 80 trillion yen.
- Govt representative: hope BoJ sends strong message to markets that govt, BoJ share sense of crisis and will work closely together.
- Govt representative: BoJ's move is swift, appropriate response to stabilise markets.
USD/JPY update
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