Bank of Japan Governor Haruhiko Kuroda has indicated that the economy is now in ‘a critical and difficult stage’ after the bank kept its current monetary policy unchanged at its meeting this morning. His key remarks were:
Economic activity is gradually returning.
The Japanese economy is still stalled.
The pace of recovery will be gradual.
Inflation is likely to stabilize in the negative range.
Economic forecasts are extremely uncertain.
Risks tend to be downside.
The bank will not hesitate to take all necessary measures if conditions warrant.
It will continue to support corporate and market financing.
The Bank of Japan seeks to maintain market stability