The Bank of Japan should review its policy framework for boosting inflation, a member of its Policy Board said Thursday, calling for stronger action by the central bank as the widening fallout from the coronavirus outbreak risks tipping the economy into yet another recession.
The epidemic has added to uncertainty about the global economic outlook and, if prolonged, may hurt consumption by souring household sentiment, said Goushi Kataoka, one of the most dovish members of the nine-member board.
"We need to be mindful that consumption may weaken further as a trend," Kataoka said in a speech to business leaders in Otsu, Shiga Prefecture. "Worsening sentiment among automakers and retailers could also affect the outlook for capital expenditure," he said, adding that exports may not pick up any time soon due to uncertainty on when global demand will rebound.