Policymakers at Tokyo-Bank of Japan (BoJ) see rising risks to the economy from slowing Chinese growth, semiconductor shortages and Southeast Asian factory closures in September, summarizing opinions expressed in their monthly rate review on Friday. shown.
Due to its next policy-setting meeting on October 27-28, such rising external risks could impact the BOJ’s latest quarterly growth projections.
“Exports and production continue to rise. But we must look carefully at how chip shortages and disruptions affect capital expenditure and corporate funding at Southeast Asian parts factories,” a board member was quoted as saying in the summary.
According to another opinion shown in the summary, “there are signs that China’s economy is slowing, while the global economy is recovering as a trend.”
While most policymakers maintained their view that the economy was headed for a moderate recovery, one said it would be temporarily hit by supply crunch and continued weakness in retail sentiment due to the coronavirus pandemic, the summary showed. Is.
“Even as the economy emerges from the pandemic crisis and begins to return to normal, it is important to maintain a mix of (expansionary) fiscal and monetary policy,” a board member said.
At its September 21-22 meeting, the BoJ kept monetary policy stable, but downgraded its assessment on exports and production, reflecting the broader impact of Asian factory closures and supply constraints.
Leika Kihara. By
This News Originally From – The Epoch Times