Bank of Japan Gov. Haruhiko Kuroda on Wednesday warned that downward pressure on economic activities could grow stronger due to uncertainty over the pace of the country's vaccination rollout after the pandemic-hit Japanese economy shrank more than expected in the first three months of 2021.
Speaking at an online event hosted by a Japanese research institute, Kuroda said the domestic economy remains in a "severe" state and economic activities are at levels lower than before the pandemic. The BOJ will continue to keep a watch on further developments and take additional easing steps if needed, he added.
The governor reiterated the Japanese central bank will consider extending its emergency scheme that has been in place since last year to support corporate funding beyond the end of September, depending on the impact of the COVID-19 crisis.