TOKYO (Reuters) – The Bank of Japan’s policy review in March won’t lead to a withdrawal of monetary stimulus, Deputy Governor Masazumi Wakatabe said, stressing its readiness to sustain or ramp up support if the COVID-19 pandemic hurts the economy further.
Speaking to business leaders in an online meeting, Wakatabe said the review will discuss measures to ensure the BOJ can deal with any future shocks to the economy “effectively” and in a timely fashion.
The key would be to strike the right balance between the costs and benefits of the BOJ’s massive stimulus, so it becomes more sustainable and “nimble” in responding to changes in economic developments, Wakatabe said on Wednesday.
“What I’d like to emphasise is that the policy examination won’t be about dialling back monetary stimulus,” he said. “It isn’t aimed solely at containing the cost of our policy measures.”
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