Bank of Japan board members warned of global headwinds to the economy as counterparts abroad rush to tighten policy to bring inflation back under control, a summary of opinions at its July policy meeting showed.
"Amid monetary tightening in Europe and the United States, it is necessary to pay attention to risks that could affect Japan’s economy, including that of the U.S. economy falling into recession,” one of nine BOJ board members said at the July 20 to 21 policy meeting.
The summary was released hours after the U.S. recorded a second consecutive quarterly economic contraction. With Japan heavily reliant on global demand, a slowdown could jeopardize the BOJ’s push for a stronger recovery to spur wage growth and make current cost-push inflation sustainable.