MarketDeal24.Com – The ongoing coronavirus pandemic which is also known as COVID-19 can plunge Japan’s economy into a deep stagnation, policymakers of the Bank of Japan warned in last week’s policy meet.
The central bank of the globe’s third largest economy expanded financial stimulus in an unscheduled policy meeting on March 16 to ease corporate financing stress and calm financial markets jolted by the health crisis.
The meeting minute discloses a barrage of divergent opinions expressed in last week’s meeting which shows deep concern in part of the policymakers.
One board member said on the condition of anonymity, “the economy of Japan may continue to stagnate even after the outbreak is over and economies abroad start to recover.”
“I’m skeptical of the view that our nation’s economy will demonstrate a solid rebound once the virus is dealt with,” another opinion in the summary revealed.
One member was of the opinion that the BoJ can continue to respond in a flexible manner to the emerging risks, through steps like emergency policy meets or ramp up in a government bond buying.
Coronavirus cases around the world have surpassed 377,000 infections across 194 nations as of early Tuesday, according to a Reuters count, more than 16,500 of them are in critical condition.